Obtaining money for 2nd investment without cash on hand

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Obtaining money for 2nd investment without cash on hand

Shelia Stokes
Real Estate Agent · Sewell, NJ · Member since 2020 · 16 posts · 3 votes

I did a house hack and first investment in feb 2022. I have since found 3 properties i know would be great flips. I am going to reach out to the out of town homeowners about buying, if they are willing, what are my options as i have zero cash on hand. How do i get the money for the purchase and renovation to flip and pay everyone back?

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Taylor DaschBusiness Member
Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
4y

Are they off market? You could wholesale them and use them to generate cash for your next down payment. If they are at a pretty decent discount, you can also use HML and flip them for a better return. Once you refinance you will be able to pay them back and hopefully have some left over for yourself!

[email protected]254-718-4249
Taylor Dasch | EG Realty560 Reviews
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  • Taylor DaschBusiness Member
    Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
    4y

    Are they off market? You could wholesale them and use them to generate cash for your next down payment. If they are at a pretty decent discount, you can also use HML and flip them for a better return. Once you refinance you will be able to pay them back and hopefully have some left over for yourself!

    [email protected]254-718-4249
    Taylor Dasch | EG Realty560 Reviews
    WebsiteView Page
    2Reply
  • Scott E.
    Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
    4y

    If your only experience is a house hack, you have no experience with remodels, and you have no money, it is going to be very hard and complicated to fund these deals.

    -A hard money lender won't lend you money without you having some skin in the game

    -A private equity lender won't lend you money without you having some skin in the game (unless you find a friend or family member who REALLY trusts you)

    -A seller financed structure could work, but you still need to come up with rehab funds. Which lands you back on the above 2 problems.

    I would try to track down these owners as you planned, and if you learn that they are motivated to sell and you can get the homes under contract, you should wholesale to a more experienced investor. Then offer to help that investor through their flip, or see if they are ok with you shadowing them. You'll learn a lot, and you'll make some money on the wholesale to put towards your next deal.

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  • Shelia Stokes
    OP
    Real Estate Agent · Sewell, NJ · Member since 2020 · 16 posts · 3 votes
    4y

    @Taylor Dasch yes they are off market. How do you find good HMLs ?

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  • Taylor DaschBusiness Member
    Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
    4y
    Quote from @Shelia Stokes:

    @Taylor Dasch yes they are off market. How do you find good HMLs ?


    I find them on my local FB Investor page. You can also use google and research them. What Scott said is true, however, if the deals that you are coming across are good enough, the HML will likely be happy to lend to you as the property / deal itself is collateral for the loan.

    [email protected]254-718-4249
    Taylor Dasch | EG Realty560 Reviews
    WebsiteView Page
    1Reply
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