Financing my first flip

[Wayne Gaudette]

Hi,

Looking to purchase my first flip. My primary home has 500K equity and I have a rental condo worth 220K (no mortgage). After researching the forums it seems to me a HELOC on my primary home to fully purchase the flip (150K-250K purchase range) would make the most sense.

Does this make sense?

Thanks,
Wayne

[Aaron Pfeffer]

@Wayne Gaudette

Non recourse hard or private money. Every time. So much love on BP for leveraging your own assets to do deals or risk doing them all cash with own money that always confounds me. Lenders everywhere are falling all over themselves to give you insanely high leverage at 8-12% money depending where you live. A flip is a 12 month or less endeavor and all the loans are one year terms and most have no prepay clauses. 10-20% down payment plus giving you most if not all rehab money too. HMLs are not evil, people. They want you to succeed so you become long term clients. Simple SFR flips that need cosmetic rehabs are HML all day long.