Earnest Money Down Payment For First Flip

[Colleen Fiumara]

Hi new & experienced investors, I need help with the initial deposit on my company's first flip, I have spoken to several hard money lenders but maybe not the right one yet.  DoHardMoney does offer 100% financing (up to 70% arv) but you need to put down your own earnest money which (in Massachusetts) is typically $500-1000 with your offer and 2.5-5% down with your p&s agreement.  Is it wise to take out a personal or small business loan to cover that initial down payment?  Or is there a hard money lender that can assist with this portion as well?  DoHardMoney is $3,000 up front to invest in their program with $2,350 promised back to you at your first closing.  The plan would be to rehab and sell the property and pay back DoHardMoney and the personal/small business loan immediately and hopefully have enough left to use my own 2.5-5% down on the next one.  Thanks for your help.

[Christi Hawkins]

@Colleen Fiumara  Hi Colleen, this is only my opinion and I do understand how much you want to get started. If you are that cash strapped I would wait. You need to at least have enough money for that and a little extra in your pocket for when something happens you didn't anticipate. Work as hard as you can for the next month or two, save every dime you can and then go at it full throttle. You will have a much better chance of being successful. If you have a family member you could borrow the money from, that would be great. I'm using Do Hard Money for my first flip as well, I've started driving for dollars, my brother is UPS driver, so he's my bird dog and I've started working with my Realtor as well. Wait until you check the new software system they have. It's called Investors Edge and it's amazing.  You will love working with Do Hard Money and if you have any questions please feel free to PM me. I would be happy to help you in any way I can.