Funding a package deal flip

8 Replies

Hi all, I'm putting together a package of single families designated for flipping. 4 total, some vacant, even one waterfront on a pond. All different owners, in the same town, fantastic neighborhoods with plenty of value to be added. There's been a lot of local growth and improvement in these neighborhoods and if i could get these on the market and sold to the new owners before Christmas, I know there's a lot of meat on the bone. The town these are in, falls under the USDA 0% down mortgage program(resell purposes obviously). my question would be: How would I approach lender(s) with a package of properties i dont have an owning interest in yet? Am I going about this all wrong by trying to package them? Would it be more practical to pursue funding for each individual property? Anything regarding financing something like this would be a great help. Thanks in advance, Kyle

If your goal is to buy and hold to build cash flow from rentals, doing a portfolio loan, or package deal as you call it, it would be fine. If this is a flip, we are each property will be sold separately to homebuyers, you absolutely do not want to package them together.

Sorry. Hit send too soon. The reason is because when they're packaged together you won't be able to sell them individually. You'll have to find somebody else willing to purchase all four properties. That dramatically reduces your potential pool of buyers, and increases your holding costs until you find him or her.

@Kyle Poirier  it almost sounds like you are trying to wholesale them. Are the sellers motivated? If so, just find your buyers and wholesale them for whatever you can and don't worry about the financing. @Michael Cohen is right, packaging these together would be a bad move if you are looking to efflorescence them individually.

If you end up buying them idividually, and plan to sell them, remember that unless you are adding massive value (i.e. rehabbing them) then you had better plan to hold them for 2 years to avoid massive capital gains tax.