Lenders For First Time Flippers

[Anthony Jones]

I have commercial construction project management experience and I have owned a few restaurants and other successful businesses (unsuccessful ones too). I know how to manage trades, conduct plan check, schedule inspections, and manage the budget/payroll, accounts payable at a high level. My last credit score was 722 and I used to be a commercial real estate broker until I let my license expire. But, I have ZERO flips. I am currently closing escrow on a small home that I got a mortgage from and I intend to live in it, improve the value, pay as much of it as I can as fast as I can (it's only a 77k loan) and improve the value so I can sell it for a profit. But my family and I will live in it as a home for at least a year if not more. In that sense it's a sorta flip, but not really. 

What is the most important thing I need to bring to a lender to get money for a true flip?  I'd like to focus on rehab and sell as well as rehab, rent, refinance. I get that more flips improve your odds, but what should a first timer make sure to have to get funded? Any advise or nuggets of wisdom will be taken to heart. Thanks. 

PS. Any lenders who are especially open to first timers would also be appreciated!

[Brenden Mitchum]

Hey @Anthony Jones, welcome to the BP community!

Well, it sounds like you are about to start a small live-in flip. As soon as you have sold or refinance that you can definitely claim it as your first deal and have at least a little bit of experience under your belt.

If you're looking to do a flip before that one is complete, just leverage all your experience in real estate when talking to hard/private money lenders. While most do really care about experience, especially in the current market, what matters most to them is the deal. If you bring them a solid deal and are able to effectively convey its potential, they will be inclined to work with you. Also, just call around to a bunch of different lenders and see who is comfortable making a loan to a new flipper and what their terms are. It's all a numbers game in the beginning so you'll soon find a few that really stand out. 

Please, feel free to message me anytime if you have other questions or just want to chat!