Hello! I'm going to dive fully into my flipping business. I'm starting my LLC, have a business plan, and I'm very familiar with the BP calculators. Assuming that I bring all of that to local portfolio lenders/community banks, are there any in the Atlanta metro area who'd be willing to fund my deals that you'd recommend?
Banks are not funding all but the most experienced flippers in metro Atlanta. Their regulators have discouraged them due to the 2006-2007 crash. All the flippers use hard money, savings or private money.
That sounds like a tall order. They might give you a line of credit based on your assets. Anything? Rental house? Another house? Equity in something? You can also usually take a 50% loan on your 401k. But just a bank financed flip will probably be very rare.
@Joel Ubiera I think your better off the hard money lender route. If you need help finding this site has a good search feature. Good Luck!
Most portfolio lenders do not deal with construction loan type project unless for larger development deals. However, It is worth a shot. Never know until you ask.
And who knows, maybe they cannot do anything for you today. But by meeting your local portfolio lenders and building a rapport you may find your self a lender for tomorrow's bigger deals. Especially if you would like to eventually use the income from flipping to buy some larger multi family deals.
Thanks to everyone for your replies. I have a few hard money lenders I’m considering, but I figured I’d look into other avenues before going down that route. I’ll definitely at least try and at the very least build rapport with them.
@Joel Ubiera - I have linked up with a hard money lender and paid the $3000 initial fee. They provide proof of funds letters up to the amount of $250,000. I have made offers on two deals so far, it is not more because of the strict stipulations of the lender (the deal has to be EXTREMELY good). The first deal fell through because the ARV (after rehab value) was determined, by their inspectors, to not be as high as I calculated it would be. I am currently waiting to see if the last offer was accepted. In the past I used to say "man all I need is some funds" now I am saying "man all I need is a great deal!" Before you sign up with any hard money lenders that require you to pay a fee contact me and may be we can partner up. I was hesitant in the past with taking on partners but I recently read something that makes a lot of sense....." 50% of a deal is better than 100% of no deal"
@Joel Ubiera A lot of what has been said is true. If you do not have experience or significant liquidity most lenders are going to shy away. I do know of some programs/lenders who can help but typically will target min loan of $100k per asset. No sure of where in ATL metro you are targeting but that price point usually knocks out south ATL which, I personally think is going to have the most growth.
PM, call or email and we can talk more. I know the south east well and have seen people grow from just a conversation or help portfolio for 45+ sfrs.