finding great deals that are going to waste

6 Replies

Im finding great deals for flips but dont have the funding. Any advise for financing? I have a hard time making it to real estate meetings in my area because of my schedule so I have minimum time to network and find people to fund the investments. I feel like the only other option is financing, but how? I dont have a huge down payment. I could save more over the next could of months but still will only have maybe 5% max on a 100-150k investment. I cant utilize FHA because of the owner occupant requirement. Once i fund my first deal I will have enough for a larger down payment moving forward. Any advise or recommendations for a first time investor.

@Brianna Williams My best piece of advice would be to slow down.

It isn't easy finding great deals.  And if you are finding multiples then they probably really are not that great.  You need to make networking a priority, find out what other investors are doing in your area and what is working for them (and how you can help them).

Originally posted by @Brianna Williams :

Im finding great deals for flips but dont have the funding. Any advise for financing? I have a hard time making it to real estate meetings in my area because of my schedule so I have minimum time to network and find people to fund the investments. I feel like the only other option is financing, but how? I dont have a huge down payment. I could save more over the next could of months but still will only have maybe 5% max on a 100-150k investment. I cant utilize FHA because of the owner occupant requirement. Once i fund my first deal I will have enough for a larger down payment moving forward. Any advise or recommendations for a first time investor.

 It's not going to be easy to go into a flip without having a good source of funding, and if my math is right it sounds like you're only looking at having ~$5k of your own money. That means you will need a partner somewhere. Do you already own a house such that you're unable to "house-hack"?

The deals ive found have been over the past 6 months, 3-4  that are guaranteed returns but ive had financial set backs that caused me to loose alot of my saivngs over time but i am now settled back down and able to save back up.

I dont currently own a home and was planning to househack in the next six months but the market is really high in the areas surrounding my jobs for multi families which is what made me start to consider flipping.

There are hard money lenders that will fund a purchase and a rehab. Might be a good option for you.

As a side note, be careful not to make the mistake of believing you have a deal with any kind of “guaranteed return” - positive or negative. There are few, if any guarantees in this business.

I will definitely keep that in mind, I definitely understand the risk and unexpected expenses. I really felt confident about a couple of them and will look into some hard money lenders thanks !!!

@Brianna Williams If you don't have time to find people to fund the investment, how will you have time to manage the rehab for the flip?  If you don't have time to manage the rehab for the flip, why would I fund your investment?  Consequently, it's going to present a problem on the partnership front.  You have a little bit of a catch-22 going on here.

Odds are you'll have to reach out to a HML and work through that process.

And, not for nothing, but @Larry T. is most likely correct in his "not that great" assumption.  I'd wager there are people looking for deals in Dallas all day, every day, and have no other competing time constraints.  I'd also wager those people have trouble finding what they believe to be good deals.  And those flippers most likely have good relationships with contractors, one of them is probably a realtor to save on those fees, etc.  Consequently, they can do what you want to do but faster and cheaper.

So if the flipping ecosystem with all of the cards falling in their favor can't find a plethora of great deals, are you really, really, REALLY sure that these are as good as you think they are?  

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here