Feeling stuck after first deal… needs leads + funds

[David Heyburn]

My first deal, a fix & flip in Belton MO (just south of Kansas City) is underway! Yes! I’m in the game!!

BUUUUTTTT, now I feel stuck to find my NEXT deal. Need some advice.

I have little cash personally but got my first deal funded from a small local bank who funded 100% purchase and rehab with private money funding a CD for 25% of the total loan as additional collateral. The issue is the amount of the CD is the max of what this private lender can give me for real estate investing. So that source is tapped out.

My first deal came from MLS, and honestly I overpaid for it, not leaving enough "of f…." factor margin let alone profit margin. So I want to go direct to seller for my next deal.

So, I think it’s somewhat of a classic issue of getting a deal flow ‘machine’ up and running and matching that with a money flow ‘machine’ to fund them. I know “without leads you don’t have a business” so I think my next step needs to be in lead generation marketing.

Any advice would be great.

I have solid credit (780+) but little cash, mediocre W2 income and high household expenses due to some high expensive circumstances that have come into my family’s life.

[Tom Fidrych]

Congratulations on your first project. I would finish this one first and then see how it penciled out.It seems you might break even or lose on this one so I wouldn't jump into the next one before you've finished the project at hand-especially if funding is limited. If you don't make money on this one, consider it an education expense and you will be in better shape for the next.