I need 100% financing on 2 San Diego Flips. How?

[Rick Prag]

I posted earlier today and someone removed my post because they claimed talking about financing was considered soliciting. I will be vague and hopefully I can read the responses before it is removed again.

I have 2 flips with a possible third that I've secured, but now I need to lock in financing. I really need to keep my savings for working capital, which means I need 100% financing on the purchase price and the rehab budget. The spreads are great on both deals. I have talked to several hard money lenders and there are several that require 10% down payment on the purchase price. Do lenders exist that finance 100%?  If not, how can I do the deal? Two lenders?  Someone mentioned something about gap financing?

[Justin R.]

@Rick Prag In situations like this, I've locally seen 50/50 profit splits - if you're not taking any risk, you're going to have to give up a bunch of the rewards.

I'm doing one deal right now where the buyer is keeping all the equity and I'm providing 96% financing, but:

- I'm holding title.

- The debt carries a very high interest rate.

- There are covenants that cut him out if things start to not go well.

Which, technically, is another way of saying that I'm buying the property, allowing him to work on it, and he's buying an option to purchase from me at a pre-determined future date and price.

As a lender, that's the only way I'd do a debt deal at that LTV. As the buyer, it's a lot of control to give up.

To be clear that this isn't solicitation, I would not do the same in this case.

Good luck finding someone.