Fix and flip funding options.

6 Replies

I am in the Cleveland area with housing costing lower than 75,000 to purchase for a fix and flip. Most hard money lenders require 75,000 minimum purchase price. The company  “Do Hard Money” does not, however they require 3,000 down payment. Is there any other recommendations for lenders? Or is “Do Hard Money” a good way to go? 

Haven't heard of that specific company, but if the hard money lender is in the area they should know the cost of flip type properties and be willing to work with you.  Also only having to put $3,000 down sounds like a pretty good deal.  Sometimes they will have "rules" (guidelines) on their website that are more flexible if you explain what you want to do to a real person.

I think Lender One also has a 75k purchase price minimum as well. Points, Doc fee, appraisal fee, 20% down.

 If you find an good local HMLs that fund the cheaper deals, let me know as well! 

I have been in the same boat in Illinois very recently, it's beyond frustrating when you find a good deal but it isn't big enough to get funding! I have a guy that might be able to help out. I will DM you @Daniel Vandevender and @Aaron Klatt . Anyone else want his info, please contact me. 

970-380-2339
Originally posted by @Daniel Vandevender :

I am in the Cleveland area with housing costing lower than 75,000 to purchase for a fix and flip. Most hard money lenders require 75,000 minimum purchase price. The company  “Do Hard Money” does not, however they require 3,000 down payment. Is there any other recommendations for lenders? Or is “Do Hard Money” a good way to go? 

Hey Daniel,

Your hard money lender should also be funding rehab costs. Our minimums are 75k also, but on deals where it is close, you just increase your rehab contingency by several thousand dollars. I.e. 75k purchase 15k Rehab and 135k ARV; Let's say we did 75% of purchase and all the rehab - BUT that only gives us $71,250. Your ARV protects the added rehab contingency, so you can add $3,750 to your rehab budget as contingency.

Also - that 3k down payment is actually 3k to join their program (I believe some portion gets credited back to you - but I don't know and I don't work for them). They may still have a down payment requirement at closing. They are a legit company though.

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