Updated over 6 years ago on . Most recent reply
Financing my first flip-Tell me if this is a smart move
I am financing my first flip with my own money. I took out a Loan on my 401k and paying myself 6.5 interest. I also took out a Heloc on my home at 4.5 interest. I also have a 14 month zero interest Credit card to buy most of the supplies/appliances with 2% cash back. My thought was this would greatly reduce holding and closing costs. If all goes as planned this will generate 22% immediate ROI. Experienced ladies and gentlemen feel free to critique me. I love constructive criticism. Makes us all better. Thanks!
Most Popular Reply
@Allen Smith Seems like this could be an good plan...
What if this first flip is an absolute nightmare and you lose $25k or something? In that situation are you still able to pay off the Credit Card and 401(k) loan?
Just about anything can be a good source of financing as long as you can live with the worst case scenario.