I have decided on sticking with my strategy of flipping (I did a mentorship on this and know the most about the process) but also running rental rates and more market info when picking my flip to use BRRR as a backup strategy.

I am in Charlotte, NC hoping to invest locally.

I have realized that I need to make sure my funding is secure before finding a deal (I am always on the search, though). I am not very knowledgable on the different loan options. Here is what I do know and what I am considering. Your opinions are greatly valued!

Hard Money Loan - I do have a nest egg (40K) to put skin in the game along with the majority of it coming from the HML. It is helpful that the base of the decision comes from how good of a deal it is - also forcing me to stick to my numbers and make sure it is a good deal before pulling the trigger. I do understand the points and interest rate will be higher with a HML but it is more important to get my first deal done and learn from that then to need the biggest return I can get. As long as I don't loose money I will be happy TBH.

DCSR: I don't know much here but it has been advised to me to check it out. I have spoke with one lender who says they loan up to 100K which would mean I would need more than my nest egg here... I don't see how this would work but I think I just don't fully understand.

Line of Credit on a Business Credit Card - This was just recently introduced to me. I don't have an LLC yet but if I did this I would need the card to be under my LLC as to not effect my credit. This feels too good to be true.. If you have experience with this please give me your input.

A lot of people say "if you find the deal the money will find you" but I am just not cool with trusting that, LOL. I feel I should lock in my funding and then go looking for the deal. What is your suggestion/experience?

What I am currently doing: connecting with as many people as possible (lenders, agents, other investors, wholesalers, no contractors yet but it's on my list), continually looking for properties and getting comfortable analyzing them, educating myself on the numbers side of things, using the flip BP calculator, learning about the market I want to invest in, viewing a few properties with an agent to get the feel of that, I have not allowed my credit to be run or any pre-approvals.

What steps should I be taking right now in your honest opinion?

Charlotte, North Carolina

3 Votes