1st Flip

[Naskat Williams]

I am approved for a hard money loan, but I have to put down 10%, and it may not cover all costs.
The home's Arv is $140,000 and it needs $25,000 in work. I purchased the home for $70,000, yet I am trying to figure out how to come up with the 10% to put down, and extra money to cover the expenses. The rehab will take 4 to 6 weeks, so I want to be out in atleast 3 to 4 months.
So, how can I come up with the down payment for the loan, and money to cover the monthly exspenses? I do not have good credit, and this is the only hard money loan I was approved for. The loan is at 65% of the ARV, with 10% down, and 4 points.
Need Help
Should I take out a personal loan for the 10% down payment, and monthly interest expenses? I really wanted to get a loan at 70 to 75% but the market is tight now.

[Shane Wilson]

My very first deal was funded through a hard money lender. I scraped, borrowed, and did whatever I had to do to get the money to do the deal. I had to get $4,000 to purchase it and I had to get money to do the repairs. I did and I made $20,000 on that property that got me started. So if the numbers work and if you want to do it find the money and do it.

On the topic of partners. I highly recommend partners. Its the quickest way to get started if you know an experienced investor that you can trust. Just be careful and choose the right partner. A wrong partner can sink you. Always get everything in writing.