How do investors finance holding cost for flips?

[Mason Gibbs]

I am looking to flip my first property. I have a good deal with a potential profit of ~$30K. I have enough for the downpayment and to get started with a hard money lender but my concern is the holding cost.

Here’s the deal:

Purchase: $165K

Rehab: $80K

ARV: $340K

Down payment: $40K

Cash available:$25K to get constitution started and misc items before the first hard money installment

What’s holding me back from starting:

Holding Cost: $3600 per money

Holding time: 6 months = $21,200

I have things lined up for all the upfront cost but my concern is the holding costs. How do most people finance the holding cost? Do you use a line of credit? Or are the costs too high and I need to reevaluate the deal.

Again this is my first deal so I maybe missing something. Any advice would be greatly appreciated.

Thank you.

[Jordan Woolf]

@Mason Gibbs find a local bank to work with. I have one that I use that will waive the inspection and appraisal if I bring them a good enough deal. I put 20% down with no points and make interest only payments.