Can anyone give me insight on funding for flipping (F4F)?
Well that is a complex question, what are you needing the funding to do? Are you looking to purchase and rehab something with one loan? Do you have the funds to purchase but need the rehab alone? Do you have no money? Do you want to live in it while you fix it up? Do you have crews to do the work? Are you doing it yourself?
Sorry to bombard you with more questions in response but the number of posts on bigger pockets, podcasts, and even webinar replays (as a pro member you can access these at anytime) that can give you a lot more information than I ever could in one reply.
I went through the full interview process and was accepted into the partnership program (they put up the cash, and split the profits 50/50). I ultimately decided not to participate. Here are a couple reasons why:
1) They wanted $3K non-refundable "member fee"--Not a huge deal.....but keep reading
2) I asked how many "deals" they approve a month and I received a very vague answer that it depended on how "active" the member was. I kept asking follow-up questions and providing hypotheticals to see if I could get a better idea if they actually funded a lot of deals. A response to one of my questions really stuck with me..."Look, if you submit 20 or so properties a month...we will probably fund one of your deals at some point" Needless to say, that was not the answer I was looking for.
3) Given that answer, I counter offered the membership fee structure. My offer was zero up front, but $6K when my first deal was approved. They had no interest and said, "How can we trust that you will pay?". I offered to sign a promissory note and a contract. They then came back with, "that still doesn't guarantee that we will get our money".
The idea that they were more interested in their "member fee that day" than splitting profits of a flip 50/50 and getting DOUBLE the membership fee was all I needed to know.
At the end of the day, it appeared to be a little gimmicky for me. It may be worthwhile, and if others have had a great experience, I too would love to hear it.
Thank You Zachery and Jarrod.
Zachery, Funding For Flipping is a company that applies for lines of credit on their customers behalf. My inquire was to see if anyone on Bigger Pockets had done business with them and to get a gauge on how satisfied they were with them. I have been studying the REI flipping business for a few months and feel that I'm ready to start making offers. I went to a website that claims that private lenders would be competing for my business. LOL. Funding For Flipping was the only reply I received. I just wanted to see what other Bigger Pockets members thought about them. I surely don't my first move in REI to be a bad one.
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