First Flip Problems!!

[Jonathan Edmund]

So I have found a property in my area (Myrtle Beach SC) that I think would be a great flip.

I know the ARV on the home is easily about $250,000 but probably higher. I am using hard money for the loan through lending one. I'm coming to find out that with their fees on top of the other fees I have, it's going to be hard to find any property that will accept a low enough offer to make the numbers work

This is my numbers on the home. The repair cost are spot on I had a contractor look. The lending fee is 2.5% plus $450 appraisal and $695 processing fee. They will do a  year interest only loan which will cost me around $1,075 a month in holding costs. Assuming I hold it for 4 months, and have the other fees involved, I would have to pay $165,000 for a home that needs 37k in work and will sell for 250k. The seller won't go below 180k for it.

Is there any ways to cut costs maybe on another type of lending or something I'm missing? (on the chart the monthly mortgage fee is multiplied by 4 assuming I hold the property 120 days)

Or is it realistic to be able to find a 250k home that needs almost 40k worth of work for 160k? This is the first motivated seller I've been able to find where I feel confident in the ability for it to be a good deal but not if he wants 188k for it and with all of my current fees.

Sorry for the long post but any advice would be greatly appreciated!! 

[Peter Pratti]

I would strongly recommend you get a couple private lenders lined up.  IT seems tough at first but they are out there.  They are much cheaper.