Updated about 8 years ago on . Most recent reply
Funding my first project - does anyone have a money tree???
Hello All,
Though I am still fresh spanking new to house flipping, the word funding constantly runs through my mind. Should I take out a loan? Should I find a high net worth investor to help me? Should I test my luck with the mafia?
I was hoping to purchase my first flip for 45-80k. What is a good rule of thumb to how much of my own capital I should invest? Most likely leaning toward taking out a loan from the bank, but would love to hear how that played out for you guys who have done it. Can someone share their go to method for funding if they have one.
Thank you,
Mo
Most Popular Reply
@Mo Farraj, can you give us a bit more to go on? You want to buy at $45-80k. Okay, you can back out the numbers, from there.
- What is the ARV of properties where you're looking (I know it's not BK)?
- How much capital do you have?
- How's your credit?
- How big a project are you willing and ABLE to take on? You may not be able to get conventional financing on a total wreck.
The easiest way to buy flips is all cash. Quick close and very attractive to the seller. You can pull that together through your own money and an investor. You'll have trouble getting hard money on your first deal. But if you're successful, you should be fine going forward.
Bring your potential deals to the forums, there are lots of folks willing to weigh in.