Buy & Flip with Hard Money Loans

[Christian Rodriguez]

Hello everyone I am brand new to Real estate and have been searching for the answer to my question for a while now. I am currently interested in buying and flipping homes and I have been studying the topic and reading books but I still have some broad questions that hopefully maybe someone can answer. I’ve spoken to a gentleman at a financial mortgage bankers Corp. about a hard money loan for a buy and flip property. He told me what I have in the bank is not enough to cover hard money loan fees (such as interest and down payment) but I’ve read and listened to podcasts that stated I don’t need so much to start. I wanted to use a hard money loan to buy and renovate the property however he told me I need to fund the down payment, closing costs, and renovation on my own and then they reimburse the money for renovations once the renovations are complete. I unfortunately don’t have enough money to renovate a property so I thought that buying and flipping wasn’t not for me. However BiggerPockets has me thinking it is possible. Unfortunately I have tried to raise money from friends and family but of course as a beginner, no one believes in me yet. So my question is: 

1) Is there such thing as hard money loans that can fund the deal and renovations at the beginning of the deal? 

2) How else can I fund renovations if I can’t find a hard money loan that’ll fund the deal from the start?  

[Diana Muresan]

Lets clear the air. I am FHA 203K and FannieMae HomeStyle renovation loans certified and I close in all 50 states. What are your total funds? You can do your first flipper as an FHA 203K renovation loan, you will only need 3.5% downpayment and you can have your realtor talk to sellers agent and build all your closing costs as a seller concession. If you don't have the 3.5% downpayment yet, perhaps you can work it out with a family member so you can receive a gift which is allowed on owner occupied properties