Best Way to Purchase a Flip Property

[Ryan Young]

I am wanting to get advice from you guys on what is my best option to get in the fix and flip game.  I currently have 2 rental properties in my portfolio and am wanting to branch out into the fix, flip, and sell sector.  My 2 partners and I have found a property where we live in Baton Rouge.  Here are the details:

Asking Price: $181,000

Our offer: $170,000

Estimated Repairs: $30,000

ARV: 275,000

We have enough cash for the down payment but not enough for the entire home or the renovations.  I suggested using a regular Conventional Loan for an Investment Property with a 20% down payment and for the renovations, using a Construction Loan.  Like I said, this is our first potential purchase on a flip property and am wanting feedback on this purchasing option.  Would this be better than hard money lenders? Any advice would be greatly appreciated.  

[Robert Leonard]

There are lots of HMLs who will finance 100% of rehab if you have 10% of the purchase amount.  With the information you’ve given, I’m generalizing, but it’s usually a better position to be in to retain more of your own cash on hand.