Fix and flip with hard money lender in Chicago

[Jameson Dixon]

Hi all! I decided to try and start for my first property.  My Uncle introduced me to a contractor he used to work with yesterday who buys cheap houses on the south and west side of Chicago and flips them or rents them out on section 8. He does most of the repair work himself and from the sounds of it, he seems very knowledgeable about this field. He asked me if I'd be interested in starting with a fix and flip. I was curious how do people usually fund these? I have funds saved for a down payment, but I was thinking of using a hard money lender.  Anyone used a hard money lender for their first one? How difficult is it to get a hard money loan? 

[Dominique Hicks]

Hi @Jameson Dixon! Last year my husband and I completed our first flip using a hard money lender. The process was not extreme, but if you have not already, you will likely need to set up a LLC (or some other sort of business name). You may likely will need to have more cash available with these lenders right now due to the pandemic. The company we used last year is now requesting more upfront for reserves. They are also not approving loans with a purchase price less than $100k. As a result, we are now seeking another company to go with. Finding a reputable company that will efficiently get the job done based on your needs can be difficult. I'm searching and reaching out to seasoned investors for guidance as well. @Bronson Massas Do you service Chicagoland area?

By the way, I'm in Chicago and I'm also a licensed Realtor. Let me know if you have any other questions.