Which options are best for financing our first fix and flip house in WI?
Your own cash, private money partners or a HML.
Thank you! That is what I thought but I just wanted to hear it from someone else. Is there any particular combination of these routes that would be most ideal? For instance, are there lenders out there that offer lower rates to borrowers who don't need to finance the renovation costs? Or something to that effect?
@William Sieving - You could do it on your own in cash or work with a lender. I think there are pros/cons to either option. The pros to doing it with your own cash are that you're not stuck on a certain timeline (fix and flip loans are usually 6 - 18 month terms), you won't be paying fees (fix and flip lenders charge an origination or "points" at closing), and you won't be paying monthly interest.
The pros to using a fix and flip lender is that you'll be able to go after a bigger deal; for example, most lenders will require you to put at least 25% down on your first down. You would be able to use all or most of your $100k as a downpayment and allow you to target a property in the $250k - $400k range. You'll also have your rehab budget funded with a hard money lender. In addition, you'll have an extra set of eyes on your first deal, which does provide some help.
Thanks for the advice! We just applied for a loan from Mofin!