Best Financing Strategies for Working Capital in Flipping

[Arindam Kalra]

Hi everyone,

I’m actively flipping 5-7 properties per month in the NC area and looking for the best way to manage working capital. I currently fund each purchase and rehab with a hard money loan, but I need a second loan based on my equity in each project to cover other investment costs.

From my research, a HELOC seems like a strong option, but I'd love to hear from others who have tackled this challenge. Have you found any other effective financing strategies to keep projects moving smoothly?

Also, if HELOC is a good option, which lenders in NC would you recommend?

Looking forward to your insights!

[Chris Seveney]

Quote from @Arindam Kalra:

Hi everyone,

I’m actively flipping 5-7 properties per month in the NC area and looking for the best way to manage working capital. I currently fund each purchase and rehab with a hard money loan, but I need a second loan based on my equity in each project to cover other investment costs.

From my research, a HELOC seems like a strong option, but I'd love to hear from others who have tackled this challenge. Have you found any other effective financing strategies to keep projects moving smoothly?

Also, if HELOC is a good option, which lenders in NC would you recommend?

Looking forward to your insights!

 A heloc is most likely not a good option - I recommend either a business partner or figure out a way to take the monies earned from those flips to roll them into the next deal. How much are you making on each flip and what is the cost? 

A business like this should be self sufficient if doing that many deals per month. Something does not seem to be adding up.