Where to look for private funding?
I'm a new real estate agent in Virginia and wanting to get into flipping distressed properties. I'm watching insane deals and opportunities slip through my fingertips because I lack the available funds to buy these $50,000-$150,000 properties requiring $20,000-$60,000 in repairs. I'm excited and would love to have a private money lender on speed dial to call that trusts me but again, being new I totally get the liability. Any recommendations on how to get this ball rolling as far as the financing side? I have decent equity on my home and a small chunk of change but not enough to cover the scope of work and projects I had in mind.
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As Bob mentioned, you need experience to get the credibility regardless of what the YouTube and Facebook gurus claim. Sure you can go to friends and family but to be honest, hitting them up and hoping the deal goes as planned the first time out of the gate is not a risk I was willing to take. If something went wring (reno costs, holding time, eventual sales price, etc.), you would either stiff them or eat the loss. Can that work . . maybe but would you lend the funds to a friend or family member with no experience?
The HML option is there but be prepared to factor in the holding costs. They are more interested in the deal than your track record although that will play a factor in the terms.
Is there a REIG in the area that you might see if there is someone that would be willing to pay you a finders fee and allow you to work with them to get credibility on a completed project. That will get you into the process without the risk and you will learn a lot on that deal.
A few options to consider
The HML option is there but be prepared to factor in the holding costs. They are more interested in the deal than your track record although that will play a factor in the terms.
Is there a REIG in the area that you might see if there is someone that would be willing to pay you a finders fee and allow you to work with them to get credibility on a completed project. That will get you into the process without the risk and you will learn a lot on that deal.
A few options to consider