Updated about 7 years ago on . Most recent reply
Financing first fix and flip
New on BiggerPockets but I've been following a lot on this site for a few years now. Anyway, I have a really solid deal in the making but I need advice on funding my first deal. I have a property I can get for $75k, 3 blocks from the beach, one block from the bay, needs $30k in rehab, and will be worth $200k easily after rehab. I will be doing all of my own work since I have 5 years construction experience and decided it's time to dive into real estate after years of research and waiting for the right opportunity. Problem is, I need to fund 90% of purchase and 100% of rehab, the only thing is that I do not yet have a home to use as collateral and being that it is my first deal, lenders are skeptical to lend to me but I am 100% confident I'm worthy of pulling this off. My credit is really good at 740 and I have good monthly income from my day job as a mechanical engineer. Does anyone have any suggestions or can anyone point me in the right direction on who I can get funding from? Thanks!
Most Popular Reply
@Shawn Harrington Sounds like you're on the right track and if you keep shopping it around to local lenders, you should be able to find financing. If you have the ability to put down more money that would certainly help, perhaps access a 401k loan from your day job, or any other savings? From what you posted, sounds like you have 10% of the purchase price for the DP, or $7500, getting another $7500 shouldn't be too difficult.
Be sure to double check all your numbers. deals that force $100k in equity, or double your total investment, are pretty rare.
Good luck!
- Tom