Is 100% funding possible on a fix & flip project?

[Chelsea Fehlauer]

We have skills, time, abilities, & even a great property in mind! But zero funds. Is it possible to get 100% financing including purchase, closing, & rehabbing even if just for the first project to get us started?

[Christian Bors]

@Chelsea Fehlauer Most HML will lend up to 65% ARV. They will want you to have skin in the game. However, that doesn't necessarily stop you from obtaining 100% financing. For example, you could use a HML at 65% then get a personal loan from a bank, friend, family member, co worker etc.... Also, if you find a deal, you could also do a JV (joint venture) with someone who has the funds. You do all the work and they will finance the deal. If you are doing a JV deal, you should expect to give up 60-70% equity unless its someone you know personally. The reasoning behind giving so much equity is your investor is basically taking all the risk. Hence, they will want a larger cut of the pie. Thirty percent of something is a whole lot better then 100% of nothing. After you complete a deal or 2, you should have a decent bank roll to start investing yourself. Good luck.

Cheers,

CB