I found a property, no I need to find financing, any tips?

2 Replies

So, maybe I put the cart before the horse but I found a property owner that is looking to offload their property at a nice price that will allow for either a reno flip or wholesale. It’s going to be my first flip or wholesale either way and since I’m still learning it’s a bit scary since I need to get more up to speed on wholesaling before going that route. Now I’ve got to find financing and am wondering where to start, hard money lenders or a lender that will loan to my llc? Any tips?

what's your first exit strategy? you have to be positive that the numbers will yield profit for all involved parties. if you aren't sure of the exit strategy or how you will secure funds then you still have a far way to go. do you have cash buyers with verifiable proof of funds lined up? you need at least 3 of them that are interested and able to close on properties in that area if you intend on wholesaling it. as for fixing and flipping, the neighborhood must be in demand in order for it to flip within a reasonable time frame. the neighborhood has to be very marketable. that is 50% of the sell no matter what exit strategy you utilize even a buy and hold. the amenities in the house, in addition to the neighborhood, will determine if its a quick flip or rental, imo. think of the holding costs. you don't want to hold it too long which will eat away at your profit...especially when you got funding from a HML. my coin.

Kudos,

Mary 

First off like Mary said, you need to figure out which strategy you are going to use.
Have you researched the area/neighborhood?
Have you ran comps?
If you are getting a loan for the property and don’t have potential buyers lined up then you could be waiting awhile which will eat away your profit quickly.

I would figure out your lending 1st.
Let me know if you have more questions.

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