Investor · Chandler, AZ · Member since 2016 · 26 posts · 7 votes
HI BP,
My spouse and I are currently looking for a fix and flip deal in the Phoenix metro area. We have $100k to invest in the flip. We find that most deals that are worth anything are around $200k+. How would you suggest funding the rest with rehab cost covered in the whole thing? I know about Hard Money Lenders/Private Money Lenders but they seem to want deal under contract first. What I don't understand is how can I have the deal under contract if the seller wants proof of funds to which i don't have for a cash offer?
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
9y
Put in your offer and if they require proof of funds or a pre-qualification letter, a HML will usually email you one within an hour. I would make contact with a HML today just to let them know what your intentions are. Having that point of contact will help the process go faster.
Investor · Fair Lawn, NJ · Member since 2014 · 384 posts · 189 votes
9y
Get a bank to approve you for a mortgage, use that as proof of funds to get the deal under contract and then finance through hard money rather than the bank including funding for the rehab.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
9y
Put in your offer and if they require proof of funds or a pre-qualification letter, a HML will usually email you one within an hour. I would make contact with a HML today just to let them know what your intentions are. Having that point of contact will help the process go faster.
Developer · Little Ferry, NJ · Member since 2016 · 426 posts · 226 votes
9y
@Robert Stephan The HML and PMLs give you a proof of funds as long as you completed the application and got pre-qualified for a loan. You can usually reuse the one they send you, so they usually only need to send it to you once.