Trying to get my first flip, but having trouble coming up with the funds.

Los Angeles County, California
Rehabbing & House Flipping
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Trying to get my first flip, but having trouble coming up with the funds.

Rufino Padilla
Member since 2020 · 6 posts · 1 vote

Hello. I'm trying to get my purchase my first flip, but it seems everywhere I try to get some sort of loans can't because I don't have any experience in the game. I have also tried small banks but have been told by them that they only do personal loans up to 25k. It's a little frustrating getting the NO everywhere I'm looking. I might not be looking in the right places. Any help?

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Michael J.
Real Estate Agent · Greenville, SC · Member since 2021 · 210 posts · 142 votes
3y

Hey there, my friend! First things first, give yourself a pat on the back for taking the initiative to step into the real estate game. That's the kind of drive that gets results, and I like your attitude.

Now, let's break this down. You've been told NO by the banks, but that's not where it ends; that's where it STARTS. People hear NO and they quit. Not you, not today.

Let's think outside the box here. Ever thought about private money lenders or hard money loans? How about joining a local real estate investment group? These are places where you can network and find people who understand your passion and will back you up.

Also, don't let lack of experience hold you back. Partner up with a seasoned investor if you need to. Find a mentor, offer them value, and learn the ropes. Make your lack of experience an asset. How? By being hungry, being willing to hustle, and being coachable.

Start hitting those local real estate meetings. Rub elbows with those in the game. Learn from them, talk to them, make connections. You've got what it takes to get this done. Remember, it's not the resources but your RESOURCEFULNESS that counts.

Keep grinding and never take NO for an answer. You're on the brink of something big.  Let's make that flip happen! đź‘Š

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  • Michael J.
    Real Estate Agent · Greenville, SC · Member since 2021 · 210 posts · 142 votes
    3y

    Hey there, my friend! First things first, give yourself a pat on the back for taking the initiative to step into the real estate game. That's the kind of drive that gets results, and I like your attitude.

    Now, let's break this down. You've been told NO by the banks, but that's not where it ends; that's where it STARTS. People hear NO and they quit. Not you, not today.

    Let's think outside the box here. Ever thought about private money lenders or hard money loans? How about joining a local real estate investment group? These are places where you can network and find people who understand your passion and will back you up.

    Also, don't let lack of experience hold you back. Partner up with a seasoned investor if you need to. Find a mentor, offer them value, and learn the ropes. Make your lack of experience an asset. How? By being hungry, being willing to hustle, and being coachable.

    Start hitting those local real estate meetings. Rub elbows with those in the game. Learn from them, talk to them, make connections. You've got what it takes to get this done. Remember, it's not the resources but your RESOURCEFULNESS that counts.

    Keep grinding and never take NO for an answer. You're on the brink of something big.  Let's make that flip happen! đź‘Š

    5Reply
  • Rufino Padilla
    OP
    Member since 2020 · 6 posts · 1 vote
    3y

    Hey Michael. So I actually just got in contact with a lender thru bigger pockets.I am looking to get in contact with someone that wouldn't mine mentoring to learn more. thank you for the advice.  

    0Reply
  • Bill J FayPro Member
    Lender · San Diego · Member since 2023 · 216 posts · 209 votes
    3y
    Quote from @Rufino Padilla:

    Hello. I'm trying to get my purchase my first flip, but it seems everywhere I try to get some sort of loans can't because I don't have any experience in the game. I have also tried small banks but have been told by them that they only do personal loans up to 25k. It's a little frustrating getting the NO everywhere I'm looking. I might not be looking in the right places. Any help?


    You came to the right place. The forums are a great way to get in contact with lenders, agents, and fellow investors. Every investor has to start somewhere with a blank slate. Have you looking into Hard Money Lenders? Most love to lend to first time investors if you find the right deal! You may just have to pay a slightly higher interest rate to get going. Take a look at BiggerPockets Find a Lender:  

    Investment Property Loans for Real Estate (biggerpockets.com)

    0Reply
  • Nicholas Ruscio
    Lender · Member since 2023 · 112 posts · 35 votes
    3y

    Hi Rufino, 

    Getting a loan as a first time flipper can be challenging. Do you have a specific property in mind? If so, please feel free to reach out with more details. (Purchase price, available down payment, renovation value). Id love to help! 

    Thanks, 

    0Reply
  • William Kudasov
    Member since 2023 · 5 posts · 0 votes
    3y
    Quote from @Nicholas Ruscio:

    Hi Rufino, 

    Getting a loan as a first time flipper can be challenging. Do you have a specific property in mind? If so, please feel free to reach out with more details. (Purchase price, available down payment, renovation value). Id love to help! 

    Thanks, 

     what will be the most common terms for lets say 50k house with 50k rehab with market value of 200k+?  what will be requirements? you can answer here or pm, please...thanks 

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y

    @William Kudasov

    First time flipper on an asset like this will be very challenging due to the low price point. Most require properties be above $75,000

    Where most investors fail is they have no money and no experience. You need one to overcome the other. If you have experience you can get away with less down; if you have money you can overcome no experience because you have equity in the deal

    Frustration sets in when you have neither which if you don’t have either then person should focus on saving money

    7e investments53 Reviews
    WebsiteView Page
    0Reply
  • Erin ChurchPro Member
    Real Estate Agent · North Augusta, SC · Member since 2017 · 254 posts · 233 votes
    3y

    @Rufino Padilla

    I’m going to share what plenty of the “big boys” around my area say - if it’s a screaming deal, you can find a partner :) Are you in local FB investing groups, attending Meetup’s, looking through BP for experienced folks in your area? That would be a good start. :)

    I know a new lender that will partner and provide 100% funds on purchase and rehab as long as it is 70% or less of the ARV. It's expensive money though. However, if expensive money/partnership gets you the deal, then it's worth it :)

    0Reply
  • Greg Miller
    Member since 2023 · 7 posts · 3 votes
    3y

    @Rufino Padilla

    Take your time. Learn, Observe, Strategize make a plan. Leverage is great until it isn’t.

    0Reply
  • William Kudasov
    Member since 2023 · 5 posts · 0 votes
    3y
    Quote from @Chris Seveney:

    @William Kudasov

    First time flipper on an asset like this will be very challenging due to the low price point. Most require properties be above $75,000

    Where most investors fail is they have no money and no experience. You need one to overcome the other. If you have experience you can get away with less down; if you have money you can overcome no experience because you have equity in the deal

    Frustration sets in when you have neither which if you don’t have either then person should focus on saving money

    you still didnt answer tho..ok...75k..terms?? typical/most common terms with ok credit 


    by the way only complete dumb person would buy property above that amount as beginner imo
    any tips how to find hard money loan company with 100k and lower amount? 

    0Reply
  • Josue Rosa
    Realtor · Los Angeles · Member since 2023 · 18 posts · 15 votes
    3y

    Hi @Rufino Padilla. Excellent advice shared already - find local, experienced people to team up with. You'll be able to scale your business much faster by learning from other's successes and mistakes. We host investor meetups for new and experience investors - we share ideas, off market properties, and resources. Invite only. Message me if you're interested or if we can help. :)

    0Reply
  • Jose JacobPro Member
    Investor · 11040 · Member since 2019 · 188 posts · 111 votes
    3y
    Quote from @Rufino Padilla:

    Hello. I'm trying to get my purchase my first flip, but it seems everywhere I try to get some sort of loans can't because I don't have any experience in the game. I have also tried small banks but have been told by them that they only do personal loans up to 25k. It's a little frustrating getting the NO everywhere I'm looking. I might not be looking in the right places. Any help?


     You never ask a bank to loan you for fix&flip.  That is not their business, they want long term loans not short term loans.  There are a group of investors who lend for fix&flip. If you go with a full project with good margin, I am pretty sure you can find an investor but the numbers have to be very attractive, I mean the margin in the deal. BP have number of investors who will lend to good deals.  Good luck

    718-200-6100
    0Reply
  • Rufino Padilla
    OP
    Member since 2020 · 6 posts · 1 vote
    3y
    Quote from @Bill J Fay:
    Quote from @Rufino Padilla:

    Hello. I'm trying to get my purchase my first flip, but it seems everywhere I try to get some sort of loans can't because I don't have any experience in the game. I have also tried small banks but have been told by them that they only do personal loans up to 25k. It's a little frustrating getting the NO everywhere I'm looking. I might not be looking in the right places. Any help?


    You came to the right place. The forums are a great way to get in contact with lenders, agents, and fellow investors. Every investor has to start somewhere with a blank slate. Have you looking into Hard Money Lenders? Most love to lend to first time investors if you find the right deal! You may just have to pay a slightly higher interest rate to get going. Take a look at BiggerPockets Find a Lender:  

    Investment Property Loans for Real Estate (biggerpockets.com)


    Thank you Bill. I have found a couple of lenders that are willing to help out. I did find them on bp. 

    0Reply
  • Rufino Padilla
    OP
    Member since 2020 · 6 posts · 1 vote
    3y
    Quote from @Nicholas Ruscio:

    Hi Rufino, 

    Getting a loan as a first time flipper can be challenging. Do you have a specific property in mind? If so, please feel free to reach out with more details. (Purchase price, available down payment, renovation value). Id love to help! 

    Thanks, 


     Hi Nicholas. since I was getting no's for answers I wasn't looking, but since I came on BP and found some, I started looking. the problem is that I'm in southern california. 

    0Reply
  • Rufino Padilla
    OP
    Member since 2020 · 6 posts · 1 vote
    3y
    Quote from @Chris Seveney:

    @William Kudasov

    First time flipper on an asset like this will be very challenging due to the low price point. Most require properties be above $75,000

    Where most investors fail is they have no money and no experience. You need one to overcome the other. If you have experience you can get away with less down; if you have money you can overcome no experience because you have equity in the deal

    Frustration sets in when you have neither which if you don’t have either then person should focus on saving money


     hi William.

    I have save up that's why I m pushing right now to start. before that's what was stoping me. I was getting frustrated for a while there. thought about quitting before even starting. 

    0Reply
  • William Kudasov
    Member since 2023 · 5 posts · 0 votes
    3y
    Quote from @Rufino Padilla:
    Quote from @Chris Seveney:

    @William Kudasov

    First time flipper on an asset like this will be very challenging due to the low price point. Most require properties be above $75,000

    Where most investors fail is they have no money and no experience. You need one to overcome the other. If you have experience you can get away with less down; if you have money you can overcome no experience because you have equity in the deal

    Frustration sets in when you have neither which if you don’t have either then person should focus on saving money


     hi William.

    I have save up that's why I m pushing right now to start. before that's what was stoping me. I was getting frustrated for a while there. thought about quitting before even starting. 


     broski what do u mean u saved up if you looking for loan lmao

    i can get 20-50k in a matter of 1-2 month, i just dont want to play with my own money since i have other investments and businesses to do


    me personally im looking hard lender for wholesale real estate or maybe complete flip 

    0Reply
  • Mike Klarman
    Specialist · NJ · Member since 2022 · 1k+ posts · 653 votes
    3y

    How much capital do you have?  I work with lenders that do a 0 if they have good credit.

    0Reply
  • Amaury Zambrano
    Investor · La Mirada, CA · Member since 2015 · 53 posts · 13 votes
    3y

    "I don't have any experience in the game" The solution is to fix the experience requirement. Part of the obstacle is Finding an experienced Investor willing to partner up on the deal.  What's the breakdown of the deal?

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    12h

    Hey Rufino,

    There are many hard money lenders that can lend to first-time investors. Happy to connect

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
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