How did you finance your first flip?

[Jennifer Edwards]

I’m a new investor in NW Houston and I’m looking to purchase my first flip in the next 90 days. I’m trying to weigh the pros and cons of different financing options. House hacking isn’t an option for me and I think I have narrowed it down to hard money or a conventional bank loan based on what I learned reading Brandon Turners book on investing with little or no money. I’m curious to know how some of you funded your first flip! I’m very open to advise!

[Whitney Hutten]

@Jennifer Edwards On my first flip, albeit accidental, the downpayment was funded by a relative and I secured a primary loan on it. Shortly thereafter, I secured a HELOC and pulled my relative's money out and paid them back with interest. Today, I use hard money lending for BRRRRs and flips (I've used private money too). I just underwrite the cost of the loan into the numbers as a business expense. I choose to go that route so I can hold the project in an LLC, have low down payments, 100% construction financing, and quick closes making more very competitive. Keep in mind not all hard money lenders are alike, so make sure you have amazing partners. PM me with Q's!