Hello BP community. I'm a complete newbie looking to take the dive and looking into all avenues for financing for my first flip or buy and hold. I keep reading and hearing of purchasing without using your own money but how much truth is there to that? Is it only in a perfect scenario? If so, what would that scenario be? Or is it only with private investors? Or are there actually lenders that are willing to lend 100% of the purchase plus rehab costs? Any advice would be greatly appreciated before my first plunge.
The only way I ever worked a deal without me going into pocket was with me providing the construction side....labor, management, advice, consultation, permits, plans, inspections, everything.....
I don't see how you get anyone to front you 100% without you having some skin in the game........
@Belliny Flores No experience equals no chance. Even with experience, it’s a bit of a unicorn....let alone carrying costs, monthly interest payments, etc.
Thanks all for your experienced input!
@Belliny Flores it’s highly unlikely and extremely risky. You will need Capital to get in this business.
@Matthew Irish-Jones . Thats exactly what I thought. I keep seeing and hearing about getting started without using your own money but couldn't wrap my head around it. Maybe everyone means private money or a mentor who goes in on the deal with them.. idk. Thank you for the tip though 🙏🏽
I found a deal and through networking found a JV investor. He came in with the money and I did everything else. I had to give away most of the profits but I got my first deal done with no money. Now I don't need a JV partner anymore.
Originally posted by @Belliny Flores :
@Matthew Irish-Jones. Thats exactly what I thought. I keep seeing and hearing about getting started without using your own money but couldn't wrap my head around it. Maybe everyone means private money or a mentor who goes in on the deal with them.. idk. Thank you for the tip though 🙏🏽
The people talking about no money are either trying to sell you a program for money or echoing what they heard somebody else say. There are a few exceptions… Very few.
Hey @Belliny Flores the process is simple but requires plenty of work on your part. They say you have to bring money, knowledge & experience or hard work to the table. With that said, it sounds like you are ready to bring the hard work since you dont have money or knowledge.
FIND A DEAL. When you have a great deal, the money partner will come. Usually the money person has the knowledge also. After you have pounded the streets, talked with 50 to 100 people who are in a bad situation, you might find one who is looking to sell. Get it under contract. Let your money person know that you have a great property under contract and that you want to flip the property WITH them. Share the profits. See what they do.
Let everyone know what you are doing. People will want to partner with you more. People will want to lend you(invest) money.
Almost all of my deals are 100% financing and always have been from day 1 which was 18 years ago. It all starts with a GREAT DEAL.
@Rick Pozos great post! 👍