Finding a lender with 0 down

[Saeid Jones]

So ive been trying to learn the game of flipping houses and i had a quick question, when it comes to getting a lender to fund a deal i heard getting a hard money lender is usually your best bet but i also heard often timed you have to put your own money as a down payment as well. I always thought no one pulled anything out of pocket but maybe im hearing wrong. Is it possible to get deals without pulling money out of your own pocket?

[Jon Holdman]

Even in this case you are likely to need 10-15% of ARV in your own cash:

• The lender will take points out right on top.  For a loan of $65K and four point that would be $2600.
• Most lenders hold back the rehab funds and release it in draws as the work is completed.  So you need to pay for labor and materials first, then get your rehab money.
• You'll have other up front costs - inspections, appraisal, insurance.
• You'll have holding costs - interest payments, utilities, maybe more insurance if you take too long.

Assuming you're successful, you will get this back once you close.  But I do not believe it is realistic to do fix and flips with no cash of our own.