Looking to do my first flip with low funds....is a hard money loan the way to go?
@Anita Williams Even with a hard money loan you will still need some skin the game. Some important things to take into consideration- a hard money lender won't typicall loan 100% of the purchase so you'll need to account for that as well as rehab and holding costs. If it's your first go at it, finding someone to partner with may be the way to go.
Happy New Year! Kudos to you for embracing the learning curve. Find someone you trust and you know is knoweldgable in the business. Your experience as a realtor must have put you in touch with those currently in the fixNflip world. Try approaching them with your current deal and see if they would partner with you so that you can learn. What you learn can far outweigh the extra profit you would make going it alone, and possibly prevent you from becoming a freshman in the school of hard kncoks.
Another option might be a business line of credit OR personal line of credit. HELOC? If credit is a problem then hard money or partnering are the options. Hard Money may or may not be appropriate, I would caution you since you are new at this. If you have run your numbers,know what the actual repair costs are (this is what gets most newbies and on occasion oldies) factored in the hard money costs, better to double your holding time in your budget. Having extra room in the budget covers one from painful unknown repairs as well, if having done all that -it still is profitable with hard money- then go for it. Just MHO.
Hope you find a good mentor,