Problem with funding my second deal. Help?

[Matt Rivera]

I have an off-market deal on the line for a purchase price of $70k. Rehab budget of $60k. ARV is $220k.

While it all seems so simple I’m having trouble getting funding due to lack of experience due to my last flip being 4 years ago. I’ve looked at hard money loans to cover home purchase + rehab but they want 20% down plus closing cost $8k which is grand total needing $34k at closing. Along with proof of funds $36k which I imagine will need to be proved on top of the cash to close. I only have $20k of available liquid funds. Ive also explored the idea of seller financing which the sellers are okay with however that still leaves me short the $60k rehab the home needs.

Do I do the seller financing to get the home in my name then look to get a personal loan to cover the rehab? I’ve explored bringing in a partner but have been shot down multiple times regardless of the profit split. What would be the best way about moving forward with this? I don’t want to wholesale or take an assignment fee because the home is a relatives. I also am ready to start building my portfolio and would like the experience of doing this. I own a new construction company (2 years) and wife is a licensed realtor so we have tools to successfully do the flip and the numbers are solid. Just having trouble getting funded. Need ideas.

[Chris Seveney]

Quote from @Matt Rivera:

I have an off-market deal on the line for a purchase price of $70k. Rehab budget of $60k. ARV is $220k.

While it all seems so simple I’m having trouble getting funding due to lack of experience due to my last flip being 4 years ago. I’ve looked at hard money loans to cover home purchase + rehab but they want 20% down plus closing cost $8k which is grand total needing $34k at closing. Along with proof of funds $36k which I imagine will need to be proved on top of the cash to close. I only have $20k of available liquid funds. Ive also explored the idea of seller financing which the sellers are okay with however that still leaves me short the $60k rehab the home needs.

Do I do the seller financing to get the home in my name then look to get a personal loan to cover the rehab? I’ve explored bringing in a partner but have been shot down multiple times regardless of the profit split. What would be the best way about moving forward with this? I don’t want to wholesale or take an assignment fee because the home is a relatives. I also am ready to start building my portfolio and would like the experience of doing this. I own a new construction company (2 years) and wife is a licensed realtor so we have tools to successfully do the flip and the numbers are solid. Just having trouble getting funded. Need ideas.

 Post the deal here in classifieds to see what it would look like and the profit split.