First-Time Flip Financing Advice

2 Replies

My wife and I have rehabbed (mostly cosmetic) both of the properties we have purchased. They were both live-able and for our primary residences at the time so we used conventional financing. We enjoyed the process, kept our first as a rental and are at a place where we can begin investing and are interested in either a flip to sell or flip to own.

It seems like everything in the marketplace is for cash sales and while we have about $30K at our disposal, it seems that this would cover the rehab budget in the deals we have been interested in. We have excellent credit and no debt except for our 2 mortgages. (Rental and primary)

Does anyone have any tips in financing their first flip deal? 

Andy,

Congratulations on  your flips.  I was in a similar situation a few years back and talked to a few banks.  Two that seemed promising at first got really complex through the process.  The third bank (where I had my personal checking account) qualified me for a $60k personal loan on the spot.  Was something like 6% interest for 10 year term. 

Good Luck!

can use a hard money lender and save your cash as most will do purchase + rehab costs. but they do charge a good amount in points so make sure theres a good enough spread to fit in their fees too. you could also go to the lender that holds your personal mortgage and see about a line of credit on your home if there's a good amount of equity in it. then use that like cash to buy another investment. I've done both of these personally and both work well.

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