Hello, I've read quite a bit about house flipping and even though there is always more to learn I think I am ready for my first deal. The only problem is I have no finances to be able to purchase my first property. I need to know some ways to get loans also csn someone also explain the differnce between hard money and private money please.
Love the enthusiasm! I really do not mean to break your spirits here. But, you say you're ready for your first deal - then say you have no finances to purchase your first property. That is actually not a huge deal and can be tackled with resourcefulness and education. Then you ask the difference between private and hard money. So you don't have the money and don't (yet) have the knowledge to overcome not having the money.
Again, I love the enthusiasm and encourage you to continue on your real estate path. I suggest you learn some more before attempting a flip on your own.
To answer your questions:
Hard money comes from a company or institution that lends money. Fund that flip, patch of land, lima one, finance of america capital, lending one, are examples of hard money.
Private money comes from a person you have a relationship with that lends their own money.
Some ways to creatively finance a flip:
Partner with an experienced flipper on your first deal. This will require you to bring something to the table. Find a deal, manage construction, do some of the work if you have that background, you will have to do something to make someone want to partner and split profits with you.
Do a live in flip. This will allow you to get a FHA loan with minimum down payment, maybe even some down payment assistance, and fix the place up as you live in it. Of course if you can't get a mortgage on your own that becomes an issue, especially if you can't find a co-signer.
Those are just a couple of ways to get into the biz. There are many more (I didn't even mention seller financing and then OPM for rehab costs) I think you would benefit greatly if you took a little more time to learn. Maybe go to some local meetups and meet investors that are doing what you want to do and learn what you can from them. I help organize a meetup in Cincy and there a multiple house flippers that will let newbies come to their flips and see what goes on in the process.
Best of luck!