Specialist · Auburn, WA · Member since 2017 · 15 posts · 3 votes
Hello All!
I’m a new investor, having done just two flips so far.
I’m running into a problem where I’m running out of cash to actually acquire the houses I’m finding. I have a hard money company I can go to, but I literally don’t have the money to pay the down payment or the interest payments.
How does everyone raise the money to pay the down + interest payments?
Thanks!
Gabe
I've been flipping houses for 30 years now and back in the day I had a line of credit and could just stroke a check. Then the downturn came in 2007, 2008 and I basically lost it all and my good credit. Since then I have used all private money. It started with a friend that had a nice savings that he didn't mind using for investing in properties. In the last 4 to 5 years I've done nearly 20 flips and my problem now is finding houses, not money. I do have an advantage with all the years experience, many individuals are more comfortable with my track record and giving me money. But, if you can really show the numbers to someone with money, they might consider. I give a detailed account to my investor; purchase price, rehab costs, time frame, ARV, time to sell, etc. Then if the profit looks good to them, they can proceed.
There are pros and cons to it all. I like the JV deals because there is no dealing with the lender, no high money costs and with a number of my people the trust is so great that they never even go see the house. They leave me to do what I do.
Many ways of doing this business out there, just thought I'd share what has worked for me.
Investor · Hopkinton, MA · Member since 2013 · 18 posts · 23 votes
8y
Gabriel,
Where have the profits from the first two flips that you did gone? Ideally, you would do a flip, and roll that profit into more properties. This should allow you to go from doing one at a time to multiple as the profit adds up from each one.
Investor · Birmingham, AL · Member since 2016 · 15 posts · 17 votes
8y
Hi Gabriel,
I've been flipping houses for 30 years now and back in the day I had a line of credit and could just stroke a check. Then the downturn came in 2007, 2008 and I basically lost it all and my good credit. Since then I have used all private money. It started with a friend that had a nice savings that he didn't mind using for investing in properties. In the last 4 to 5 years I've done nearly 20 flips and my problem now is finding houses, not money. I do have an advantage with all the years experience, many individuals are more comfortable with my track record and giving me money. But, if you can really show the numbers to someone with money, they might consider. I give a detailed account to my investor; purchase price, rehab costs, time frame, ARV, time to sell, etc. Then if the profit looks good to them, they can proceed.
There are pros and cons to it all. I like the JV deals because there is no dealing with the lender, no high money costs and with a number of my people the trust is so great that they never even go see the house. They leave me to do what I do.
Many ways of doing this business out there, just thought I'd share what has worked for me.
I've been flipping houses for 30 years now and back in the day I had a line of credit and could just stroke a check. Then the downturn came in 2007, 2008 and I basically lost it all and my good credit. Since then I have used all private money. It started with a friend that had a nice savings that he didn't mind using for investing in properties. In the last 4 to 5 years I've done nearly 20 flips and my problem now is finding houses, not money. I do have an advantage with all the years experience, many individuals are more comfortable with my track record and giving me money. But, if you can really show the numbers to someone with money, they might consider. I give a detailed account to my investor; purchase price, rehab costs, time frame, ARV, time to sell, etc. Then if the profit looks good to them, they can proceed.
There are pros and cons to it all. I like the JV deals because there is no dealing with the lender, no high money costs and with a number of my people the trust is so great that they never even go see the house. They leave me to do what I do.
Many ways of doing this business out there, just thought I'd share what has worked for me.