Cash reserves needed to begin a flip
As a new investor I’m like a sponge. I’m looking for every piece of knowledge that I can find to fill my head with as I begin my journey.
The question I’m asking my peers on here is, how much money should one have in reserves before starting a Fix & Flip, considering I will be using a Private Money Lender. I know I will need to raise the money that they will not cover, 20-25% of the buying price. I know some people do this with no money in reserves but that seems a bit risky to me. I’m looking at buying a property in the 80-100k range, single family.
How did you do your first deal? What are your thoughts on this? Do you recommend PML or Hard Money and why? Any input will be greatly appreciated. Many thanks.