I'm a full time student and I have a full time job. I hve been wanting to get into the business for two years now. I've done a wholesale deal before and I'm not opposed to it but it just seems that for my goals id prefer to buy fix and sell primarily with wholesaling being something I do if and when the opportunity presents itself.
Anyhow, what I'm seeking is advice from real investors who can see my situation and say what hey would do. How can I use private money or hard money to some first deal considering I've done no deals and is it smart to do this? Or keep waiting until I get the cash to put up? I'd have no "skin in the game" besides the contract is new the full amt etc. do lenders work it people like this or is it like traditional loans where u must have a certain percentage to put down?
I've not come across any hard money lenders that will provide 100% financing. I have a long standing relationship with a lender here in KY, and the lowest they will do is 10% of purchase price. They will provide all funding for the rehab up to a certain amount, however I've found it's best to have some working capital. If you don't, you're stuck as the middle man asking the bank (HML) for a draw so you can hand it over to a contractor...and this is a terribly annoying situation for you, the bank and the contractor.
I would not try to do a rehab without 20% of purchase price available. There are others that may have used more creative ways to do flips without any of their own cash, but usually not a first timer. In order to get one or more people to back you for 100% of the cash needed, they'll likely want to see some experience and proof that you will deliver.
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