How I funded My First Flip

Question

Hi all. I'm working on a blog series to help the newbies and wanted to get some material from some of the experienced flippers out there. In one simple sentence, where did you get the money to fund your first flip? Eg. conventional loan, HML, savings, credit cards, family, friends, etc.

I'll start:

First flip was funded with 10% personal savings, 20% loans from friends, 30% credit cards, 40% construction loan from credit union.

I'll start:

First flip was funded with 10% personal savings, 20% loans from friends, 30% credit cards, 40% construction loan from credit union.

Brian Burke · Answer

I simply had no other options at the time. If I hadn't done that, I probably wouldn't be where I am today.

Glenn Espinosa · Answer

Brian Burke - That's awesome! In the past I've networked with people who frowned upon my use of credit cards as a method to break into real estate.

It's risky and just about every other method is better BUT if the deal is juicy and the numbers are true then I ask why not?

Account Closed · Answer

I used a home equity line of credit to purchase ours.

Brian Burke · Answer

Pace Jordan, I'm not too handy, I leave that up to the pros.  Went full time over 10 years ago.

James Vermillion · Answer

First purchase was a commercial loan from a regional bank.

Pace Jordan · Answer

Brian Burke, did you do the work yourself? When did you decide to go into real estate full-time?

Brian Burke · Answer

My first flip was subject to existing an existing loan, and I used cash advances from a credit card to bring the loan current.  Then used credit cards for the rehab.

Steve Wilcox · Answer

First property was a live in, FHA 3.5% down
Next ones were all cash, including current project
Now moving toward building relationships with hard money lenders and other private money sources

It would be interesting to hear from some of the really seasoned investors doing this on a large scale, how they progressed from first deal, up through to where they are now, what they might have done different, or wish they had started doing sooner.

Dell Schlabach · Answer

First one was from a line of credit from another company I owned.

J Scott · Answer

First one was cash from savings.  Second one was a conventional loan with a cash downpayment.  Next few were portfolio loans with cash downpayments.

How I funded My First Flip

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