What type of financing would be right for me?

Question

I am just finishing up my first house hack 2 year flip and am looking to flip homes in Sacramento full time. With the money I will make from my first deal, along with private money from my parents and business partner, I will have roughly 100k in funding for a flip. A flip in this area will require atleast 3 times that. With that said, where should I look for more financing options? This isnt my first experience with buying and rehabbing per say, however it will be my first deal with a quick turn around. I have some contacts labeled "private money lenders" from the REI by  @David Oldenburg networking list however because I dont know what to expect, or how to approach a lender, I havent made those calls yet. Any advice on how to handle this conversation and what a potential lender is looking for would be great.

Gordon Cuffe · Answer

@Brad Farmerhard money lenders are charging 10% to 12% interest rates and 2 to 4 points for the fees. They will look at the deal when deciding on funding. If your keeping the house more than 4 months and the house is not too bad of shape then you can get lower interest rates and lower points. If you look to the right, you can see ads from hard money lenders where you can go online and they will tell you how much they charge. If you want local people then send me a message and I will give you some names and numbers.  Getting the money is easy, finding the deal is the hard part right now.

Gordon Cuffe · Answer

@Brad Farmerit is easy just call and say hey I have a deal I want financed. How much money can I get from you? I know of plenty hard money brokers that only want 10% down and will finance the rehab costs . If the house is not too bad , I know of lenders that will not charge hard money rates. Just send an email or pick up the phone and ask for money and they will fund.

Andrew Postell · Answer

@Brad Farmer my guidance is that you should call multiple lenders.  You need a good partner that will "show you the ropes" in a way.  So some will be more willing to work with you than others.  If fees and interest rates were the same how would you decide?  And it's ok to open with "hey, I'm interviewing lenders to see who I should go with" that way the expectation is that it's ok that you don't commit during that first phone call.  Hope this helps!

What type of financing would be right for me?

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