Flipping Question: Refinancing Fears

[Keegan Beck]

I've been wholesaling in the Charleston, SC area for about two years now and I'm ready to start flipping myself.  I know I'm going to use a private lender to finance the purchase and rehab work, but now I'm getting hung up on my exit strategy.  If I'm unable to sell the flip I plan on BRRRRing it.  My concern is the refinance - we've been able to pay off a lot of our debt with our proceeds from wholesaling, but my credit score still shows the scars from some of those high interest credit cards, and I'm afraid I won't qualify for a refinance.  How do I get around this?  Going into  a project without a good exit strategy isn't something I'm comfortable with - thanks in advance for the help!

[Cheryll Ramirez]

Hi @Keegan Beck. A lot of investors have this struggle. I know, I help my borrowers find long term financing for their BRRR's. There are investor loans, Non-QM loans, and as a last resort,... longterm Hard Money. I do not offer longterm Hard Money, but it can be an option. Also, if you haven't already, develop a relationship with a LOCAL bank or Credit Union. They are usually more willing to overlook your blemishes. Best of LUCK! No better way to retire than with Passive Income through Real Estate!