Financing options for beginners in Charlotte, North Carolina.

8 Replies

Hello, BP!

I am in the early stages of starting my REI career and currently assembling my team. For background:

-I sold my first home last year and I have about 25k of my own money available to invest.
-I've narrowed my focus down to fix and flip and rental properties. I'm thinking that starting with fix and flip is the best way to quickly gain capital to be able to start investing in multiple rental properties, rather than spending all of my current capital on just one rental property and having to wait for income from that property to generate enough to invest again.
-The homes in the area I am interested in flipping would likely require 115-150k for initial purchase. Based on comps, they should be able to sell for 275-300k after rehab.
-I recently (Nov 2018) purchased a home that I am living in with one roommate, so house hacking or live-in flipping isn't an option.

Does this sound like a good path to take, or would you suggest doing things in a different order?

The thing I'm having a hard time figuring out is what type of financing would be best for me. I'm hesitant to go with a hard money lender on my first project. Does anyone have any recommendations of local banks or lenders in the Charlotte area that they have had good experiences with? 


Any advice you can offer to a newbie would be greatly appreciated.

Thanks!

Hey @Zachary Whiteside ! This sounds like a great path to go down, especially if you enjoy doing it, you may find that you transition into doing the BRRRR strategy during it as well (if you find a property that would cash flow)

If I were you, id go and sit with several community banks and credit unions to discuss what you need, they are often very flexible!

Otherwise, I'd start networking and finding a private money lender. Show them potential deals, why they should invest with you and the returns they can make

@Zachary Whiteside Just go and sit down with their commercial department and let them know your plans and see what they have to offer you. Every bank/union will offer something different and youll find one you like working with. I personally enjoy credit unions!

Congrats on getting started @Zachary Whiteside ! My wife and I have used Atlantic Bay with Patrick Messinger and have been pleased with getting deals closed quickly and a week before closing our most recent investment. PM me if you need further details and good luck getting started! Agree with what others have said about local banks though. Keep networking!!

Jared Wonders

Hi @Zachary Whiteside just a sidenote that I've come across while working with investors...most banks will not finance the rehab work, just the initial purchase. So make sure you ask about that! We have worked with South State Bank in the past and they've been great to work with. Also double check the timeframe it takes them to close. Some credit unions take 45 days to close and that long of a close can be the reason a seller picks someone else's offer over yours. Just my two cents. Good luck!

Originally posted by @Jared Wonders :

Congrats on getting started @Zachary Whiteside ! My wife and I have used Atlantic Bay with Patrick Messinger and have been pleased with getting deals closed quickly and a week before closing our most recent investment. PM me if you need further details and good luck getting started! Agree with what others have said about local banks though. Keep networking!!

Jared Wonders

Does Atlantic Bay offer any other funding options (personal loan/line of credit) besides mortgages? And do you know what their ARV is on refinance? Thanks for the recommendation!

Good afternoon Patrick!

My wife and I have purchased based on conventional mortgages therefore I unfortunately do not have the experience with the company regarding refinancing options or LOC or personal loans. Best of luck!

Jared Wonders

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