Help for newbie on alternative financing ideas
Hello!
My wife and I are wanting to start our career in house flipping/investing (while maintaining our current careers until we get off the ground) We are stuck at the beginning stages and need advice.
We have reached out to family/friends anyone in our circle for investors yet no ones interested or have the money to invest. In addition, we have reached out to hard money lenders who’s max is up to 75% for the purchase. The problem we are running into is that we don’t have 25% down and no gap funding available at this time.
What is another option? We’re not ones to give up we just need some help/advice on maybe a different approach we haven’t heard of or seen.
(We do have a home through FHA we purchased this last year but equity is not high enough to pull out.)
Lastly, we spoke to several realtors and they seem to not know anyone who is looking for 100% investments now and owner finance is soooo rare here.
Any piece of advice or suggestions are greatly appreciated!
Most Popular Reply
Hi @Alberto Medina, welcome to the Biggerpockets forums!
On your first renovation property it will be a very hard sell (always, and doubly so in this economic climate of confusion) to get any savvy investor to fund 100% of purchase price, holding costs, and rehab costs.
My advice would be to use the cash you do have to partner with someone in your area who already invests successfully. Earn a good return from the cash partnership and learn from them with each deal. Once you cycle your money a few times and increase it (while continuing to save from your full-time jobs) you should have the funds to begin investing solo soon enough :)
Best of luck, Alberto!