Hard Money Lenders and Gap Funding

[Tracie Murphy]

Hello Bigger Pockets, my business partner and I are working on our first fix and flip deal for a SFH. We have contacted numerous lenders requesting 100% purchase and rehab and gap funding to cover all additional costs. Has anyone had luck with obtaining both funding sources through lenders to fully cover a fix and flip? If anyone has recommendations we would greatly appreciate it.

[Jonathan Taylor]

@Tracie Murphy Maybe seasoned flippers with great track records could obtain 100% across the board, but new folks can not unless its lent by a family or friend as @Jay Hinrichs said. You're looking at 70-75% acquisition and 90-100% reno costs no more than 70% LTC for inexperienced flippers. Lenders want to see that you have cash in the deal otherwise why would they lend on the project? Fix and Flip are the  highest defaulted loan in the non QM world so the lender takes on a lot of risk and as anyone on this site can tell you. Reno's come with unforeseen problems, even more unforeseen from an inexperienced eye.