Options for funding a fix and flip in WA...

[Melissa Lee]

What are my options for a fix and flip other than private and hard money? This is my first venture into a fix and flip.  I'd be happy to take private/ hard money, but since its my first flip I'm aware of the hurdle I would need to cross to convince someone to lend me the money. I have technically have the cash to purchase a house plus a reno budget, but I'd like to use the lease amount of my own money as I can...

Can I seek a conventional loan? I cant say its a second home since I live in the same state... I could try for an investment, but wouldn't I have to set up a LLC? What parameters would I need to meet?

[Nghi Le]

You could try to do some creative financing with the seller (seller financing, lease option, subject to, etc), but those are typically much harder to accomplish.  If you want to do conventional, a HomeStyle Renovation loan will finance both purchase and rehab.  But whether or not the property qualifies is another question (as well as your personal financials).  Also, typically conventional loans typically don't work in our market because it's so competitive and nobody wants to wait 45 days for the bank to close.

Private money is hard to get because it's dependent on trust and relationships, and you usually do need to show a track record.  However, hard money is easy; they WANT to loan to you, even if you're a newbie.  Right now there are more money than there are deals, so they're getting desperate.  Feel free to PM me for some hard money options in our state.