Best Financing Strategies for Working Capital in Flipping

Member since 2022 · 4 posts · 3 votes

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!

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Chris SeveneyBusiness Member

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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes

Quote from @Arindam Kalra:

Hi everyone,

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.

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Scott JohnsonBusiness Member
Specialist · Greenville, NC · Member since 2019 · 673 posts · 408 votes
1y
My first thought is to check with your hard money lender. It is my understanding that hard money lenders prefer to be the only deed of trust on the property, and tend to require it.

That said, I don't flip regularly, so take my comment with a grain of salt.

It sounds like you have a solid track record. Why not look for a private lender who'll lend more on flips or hold a few rentals to draw equity from?

Glad to meet a fellow North Carolinian on BP!
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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
1y
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.
7e investments53 Reviews
Website View Page
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Ophir Davidovitch
Member since 2025 · 15 posts · 7 votes
1y
Curious to hear how this worked out for you. Did you end up going the HELOC route or find another strategy that helped with managing your working capital? Anything you learned through the process that you'd be willing to share?

I'd be interested in connecting and chatting more about this if you're open to it, I am always looking to learn from others actively working in the NC market.
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