Looking to do my 1st rehab and I need help.

[Raymond Diaz]

Hi, My name is Ray and I came across a good deal on a single family home with acreage in OK that basically needs drywall and flooring to complete. Since this is my first rehab I'm having trouble finding money/investor to do the project. I will be doing the rehab/finishing the home. I have an LLC and I've had 5+ Primary residences that I've done work on over he last 30+ years. I am an electrician by trade for 34+ years. The purchase price plus rehab costs is less than half of the ARV (Approx. $550k). Any advice and help is appreciated.

[Jeff S.]

You’re answering your own question, @Raymond Diaz.

Though there are fix and flip lenders who will lend to newbies, most want to see a history of successful fix and flip experience. Doing work on five primary homes and having an impressive electrical background is great, but it doesn’t mean you know how to flip a house. Sorry.  I know you probably disagree.

The other issue is your deal, which will raise eyebrows. Everyone is entitled to the occasional deal of a lifetime, and you're no exception. With no flipping experience, a realtor who isn't helpful, and no interest at $400k for a $550k ARV for over a year, something seems suspicious (possibly a rural property?). For your own safety and to convince a lender, don't buy this property until you can clearly explain why. A good lender doesn't want you to lose money any more than they do.

Given the competitive nature of the industry, there are many lenders now who will lend to newbies. Keep looking and you’ll find some. Make sure you have a good explanation of why this is a legitimate deal (for your own benefit), and don’t try to oversell your experience.

Best of luck to you, Raymond.