I have opportunities to fix and flip on Long Island, NY but unfortunately do not have the cash for it. I am new to the business and do not have any experience in flipping properties. How do you recommend I get started? Are there any hard money lenders that will loan with no experience? If so, where?
Specialist · NJ · Member since 2022 · 1k+ posts · 650 votes
2y
So, Long Island is a baller's market. Big deals. Big down payments. Big holding Costs. Big Closing costs. In short, this market has a huge barrier of entry and it is capital or very strong borrowing power and usually both.
There are lenders who will lend to a no exp investor, but not some 500k Long Island property that needs 200k in work and will resell for 1.2 Million. That for sure WILL NOT be your deal one with a lender. Would you lend a million dollars to someone who had no clue of the ups and downs and the bumps in the road of flipping houses.
This is why I build out networks in the midwest for those looking to break in because those 90k houses with the 40k rehab, those houses are the deal 1 deals a lender would like to see. But in the end money trumps all. If you can show me a bank statement with a million dollars in it, a lender will tend to not assess the loan as being as risky.
I connect you with my lender. However, they require 25-30% downpayment on your first rehab, which goes down with every rehab project to minimum of 10%.
See if you have way to pull some cash - 401k, home equity line of credit...
I am also on Long Island and looking for properties that I can rehab. Let connect.
Specialist · NJ · Member since 2022 · 1k+ posts · 650 votes
2y
So, Long Island is a baller's market. Big deals. Big down payments. Big holding Costs. Big Closing costs. In short, this market has a huge barrier of entry and it is capital or very strong borrowing power and usually both.
There are lenders who will lend to a no exp investor, but not some 500k Long Island property that needs 200k in work and will resell for 1.2 Million. That for sure WILL NOT be your deal one with a lender. Would you lend a million dollars to someone who had no clue of the ups and downs and the bumps in the road of flipping houses.
This is why I build out networks in the midwest for those looking to break in because those 90k houses with the 40k rehab, those houses are the deal 1 deals a lender would like to see. But in the end money trumps all. If you can show me a bank statement with a million dollars in it, a lender will tend to not assess the loan as being as risky.
Lender · San Diego · Member since 2023 · 216 posts · 209 votes
2y
Be wary of lenders offering 100% financing, especially when you have no experience. I would recommend partnering with someone for your 1st couple deals to get started. Many Hard Money Lenders will work with 1st time investors but they will want to make sure the numbers check out and you will need to put down around 20%.
Realtor · Hartford, CT · Member since 2023 · 19 posts · 7 votes
2y
Everyone that has replied has brought up really good points and I agree with all of them. Check out "Investors Edge". I have never worked with them, but I have had a presentation from them; that would be one of your cheapest option assuming everything they say to you is true.
Do you know investors and contractors? If not, you need to meet some. If you know investors and contractors, find a great deal an investor is willing to joint venture with you on. If you have constant access to great deals that you have access to and he doesn't, have him front the money and you manage the process and even get in there and help the contractor with your labor. All he has to do is put his money up, and sit back until it's time to sell. Show the investor your skills that make you the right guy to partner up with, and explain to him why you're the right guy for the job. Find a way to put skin in the game without having the money. That's your only hope to putting no money down.
Real Estate Investor · TN · Member since 2010 · 294 posts · 160 votes
2y
Anthony,
If you haven't already join a local real estate investing club and start learning from other members who are actually investing in your area. Learn as much as you can about real estate investing through online resources, books, real estate agents and so on. Partner with an experienced investor that you can relate with even if that means you volunteer to help on his or her projects while you learn the business.
I would also suggest you look into lease options. In my opinion a lease option is a great way to get into real estate investing with low risk. If you find the right distressed property you can get in with less money. Good luck and keep asking questions here on BP there are a lot of experienced investors that are willing to offer advice for free.
Investor · Virginia Beach, VA · Member since 2014 · 4 posts · 4 votes
2y
I'm here to agree with Shawn
Your best move right now is to joint venture with an experienced rehabber in your area. Earn while you learn. Taking on a large first deal with no experience, no resources, no money : high risk for the lender. Partner with someone else - you'll learn so much, develop resources & MAKE MONEY