Help me find a solution or give opinions :)

[Andrew Urban]

Hello,
I have been a member for a while and have read a number of post which some what relate to my situation, but I wanted to ask for some more advice. I looking to purchase a single family, un-owner occupied, to rehab and flip. I have some funding but will need more in order to secure and flip the property. Here are the details:

House list price: $49,900
Estimated value from Zillow: $160K
Similar homes in the area have sold for $90K- $130K in the last 90 days
Rehab cost: $15K-K20K max
Good thing about area is its in a "revitalization" area which means there are LOTS of first time home buyer intensives from the town and state not to mention the government ones.

I currently own two rental properties which I have owned for around 2yrs each. I still owe to much on the principle to take out any lines of equity so that is out of the question. I have around $10K in the bank I can use along with the two house for collateral and experience.

What is the best way to fund a project like this? Does this project seam like a good deal for those of you reading it? What is the biggest difference between a private money lender and a hard money lender? Would it help to have an end buyer? Also should I have a contractor ready to go one the project with an estimate? Any help you could shed on this project would be much appreciated. Thank you in advance.

Andrew
:help:

[Curt Davis]

Here is my .02 Cents:

Whether or not the deal is good or not is really up to you. If your numbers are correct then you might have something. Remember Zillow in nothing accurate.

If you get a private money partner to front the money only, then you can control the deal and once you flip it you split the profit 50/50/

If you find a hard money lender they are going to charge high origination and probably monthly annualized interest that will also be high. With the hard money lender there is a possibility of being foreclosed on if you are never able to sell the home.

With the money partner your risk in minimized and your not paying any monthly interest or origination. See if you can find a money partner first.

Hope that helps you some.