All Forum Posts by: Kelly Webster

Many first timers take out a small equity loan against their house to pay the 20% down. Then pay it back once the flip is sold and go again. Once you start building a good reputation and history with a HM lender, that history comes into play with your other flips in the future. A good history with a HM lender will eventually afford you some more leeway with them down the road. Choose carefully, but remember that becoming an active property investor is a LONG game, not a short sprint. A lot of this is trial and error.

You can enter a joint venture with other investors. Depending on what each person puts in, this could dramatically reduce each investor’s initial cost.

I'm forming a JV now where we each put in $5K.

I wish you all the best.

Look, real estate transactions cost money.  Someone has to foot the bill.  I've never heard of a newbie getting 100% funding, ever.  And you are going to lay at least 20% down, at least.  No 10% for you. 

We have a whale client that does 3 million per month in real estate loans. He gets 100% financing with all costs: interest payments, orig. fees, closing costs rolled into the back. He gets that because 1, he's doing 3 million per month, but two he's willing to get gouged on points and rate. Yes, I said gouged. He pays 4 points and up to 15% and he's willing to do that because the ROI on the properties he's able to tap into are crazy. He's buying a distressed property for 750k. He's putting 1 million into it, but he's getting 3.5 - 4 Million on the sales. So, he's willing to take the terms in return for very limited holding costs.

Be prepared to put 20% down on a fix and flip and 25% down on a turnkey.  

@Kelly Webster

it's tough to start with HM.

are you in a position to house hack?

If it’s your first deal you won’t find a hard money lender to fund 100%. You'd need a track record of success to get those terms. 
Getting into real estate with no money is not impossible, but unless you have a rich friend or relative willing to give you money with no experience it’s very unlikely. But to your point it sure is talked about online a lot. Generally speaking people pushing that strategy have something to sell you.