New to Flipping

[Alex Whitfield]

I am brand new to Flipping and have been lurking on BP for the last couple of weeks. I'm ready to get my feet wet, but was hopping to get a little imput/advice before doing so.

I've found a SFH in an up and coming area in my city for $69900. It needs about $15,000 in work. Other comps in the area are selling for $115000-$135000.

I am currently working on my credit right now, but it is not where it needs to be to get a conventional loan. I also have very few funds to work with-- as I've only been considering Real estate for a few weeks and just bought my first house (primary residence). I do not want to miss out on this deal so I have been considering using a Hard money lender for the purchase price and repairs.

Does this sound like a good plan? My concern is that with me being a newbie and not having much of my own money to put into it, that a lender may not be interested. I do plan on doing the rehab myself along with my brother (we are both in construction), will this make a difference in being able to find funds or not??

Thanks in advance

[David T.]

Your best option is to find an experienced investor who will fund you and guide you through the process. That's going to be a challenge and you need to be willing to give up 75% of the deal to go in this direction. Start by offering 50/50 and market it locally.

In the end you will have completed your first flip, gotten invaluable experience and hit a payday to boot. Probably make a good investor relationship if you get it done without too many bumps.

Sounds like a reasonable deal, good luck with it!