New Investor in NC, am I stuck?

[Justin Gilbert]

Hello all,

I'm looking for some suggestions.

I want to start flipping houses. I do not have much capital to invest with so I've been calling around to some HMLs and it seems most have changed their requirements since COVID hit. Most National lenders wont even work with new investors, they require at least 3 recent purchases not including primary residence. They all say there may be a local lender that will work with new investors right now at a 70% LTV, 12-15% interest, and a couple points. I just dont see how I could make that work even if I did find a lender to do that. I know I could partner with someone to cover the purchase and rehab or the down payment for a HML. I'm still networking so thats not an option right now, unless you're reading this then, lets talk. :)

I've been reading @Brandon Turner's book "The Book on Investing In Real Estate with No (and Low) Money Down: Real Life Strategies for Investing in Real Estate Using Other People's Money". It has been very insightful. Seller Financing and Lease Options feel very situation specific, which I will be keeping an eye out for. But for deals that are "basic" (I could just be over simplifying this) should I just keep hoping to find a HML that will give me a chance and keep networking and hope I find a PML or is there something else I can focus my efforts own?

Thanks in advance for any thoughts.

[Odie Ayaga]

I do know HMLs that lend to new investors right now, but you still need to have capital even at 100% financing to handle closing costs, fees, draws etc. You should have at least 30K available in same way shape or form to work with an HML.