Private Money Raising for Fix and Flip in San Diego

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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes

Hello,

I am a new investor in San Diego County. I am looking to start my investing journey with Fix and Flips in San Diego. My buy box is SFR 3 bed, 2 bath, less than 2,000 sqft. and below 800k.

My current bottleneck is the down payment needed for the flips. I have already talked to hard money lenders and got the pre approval. I am also in constant contact with wholesalers. I also already have 2 GCs lined up. Where I'm currently struggling is coming up with the necessary funds to cover the 10-15% down payment and remaining funds for the interest payments on the hard money loan, etc.. I have a decent amount of money saved up, however; it is still not enough to cover the amount needed for this market.

Any suggestions on how to find private money investors locally? Thank you in advance for any feedback and help!

bring on an equity partner

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Anahit Urfalyan

Member since 2025 · 1 post · 0 votes

1y

Hello, I keep an eye on the MLS as a real estate agent in San Diego and I will let you know if I find anything on the market! What areas in San Diego are you looking for?

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Bo TullyPro Member

Member since 2021 · 14 posts · 5 votes

1y

Hey Jorge,

I'm in a similar situation. I have a few long-term rentals but am looking to start fix and flipping SFR's in San Diego. I have been attending a bunch of meetups to try and network with others that would have a complimentary skillset to mine that could be a good partner. I have heard of other investors partnering with their GC to align incentives and bring other capital to the deal or provide cash savings in the deal. Would be interested to hear how investors have structured these partnerships and how it worked out. Just an idea. I'm with you in the hunt for capital to help get a deal under the belt and scale though. Good luck with the venture man.

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
1y
@Bo Tully as I mentioned above bring on an equity partner
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Stuart UdisPro Member

Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes

1y

Chris is right, having an equity partner will help. There are also construction loans that capitalize interest reserves into the loan meaning your equity contribution is only 20% in many cases of the anticipated interest charges throughout the project. This could reduce your equity needs. But a word of caution: When you calculate your equity needs consider funds necessary to advance construction in addition to the down payment and interest payments.

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