First fix and flip with no reserves hard money

[Hannah Espejo]

Hello everyone I have been doing a ton of research in regards to fix and flipping my first home! As everyone knows this market is a little slim however I will be putting in the work. My situation as it stands is tough at the moment but I am not a quitter. I’m looking for a property that needs about 30,000 in rehab maybe just bathrooms, floors, and paint. I don’t have cash in reserves for the the downtime’s while rehabbing in 4 months. Is there any advice someone can give me in regards to hard money? I only have $6,000. Is there a such thing as 100% finance with no money down and that a lender can tack reserves for insurance, interest and payment into the loan amount possibly? I currently live in an apartment and want to utilize the time my lease is till November. My goals is to fix and flip two or more properties as in a single family home then have an investment rental property! I’m a newbie but I want to go to meet ups and love learning. I have an agent I’m working with right now who is going to help me search for properties to fix and flip. I own my own nail business right now but eventually want to dive full time into real estate! Can a lender use the property I want to fix and flip as the asset only? I would really appreciate all the advice I can get and maybe tag team with someone on a deal and learn and grow! I’ve never wanted this so bad.

[Jay Hinrichs]

Quote from @Darius Ogloza:

@Hannah Espejo In answer to your question, yes, there are lenders out there who will loan solely against the subject property BUT those lenders are going to require some margin of safety in the event the asset will need to be repossessed and sold UNLESS you have an impeccable track record with them.  As a newbie, it is simply unrealistic to expect someone to loan you more money than the asset is worth as is.  In your shoes, I would try to find a more experienced partner.     

exactly and do NOT fall for scam lenders who will approach you based on this post or any lenders on Social media you simply do not have the reserves and experience to borrow money from anyone who is not your close relative or very close personal friend. RE Flipping is a hugely capital intensive business with competition these days through the roof.. Frankly and please take it as intended but I am shocked an agent would be working with you when in reality you have no capacity to transact.

Take this time to go to meet ups  bird dog for some investors for some fee's to build your cash position.. no one should be flipping houses if they dont have at least 10% cash up front for the purchase and 50k or more in reserves.. U  can Try Do Hard Money but be aware they promise 100% but then you have to pay 3k for their materials and then I think based on other posts here on BP its 600.00 per submission for underwriting and you need EM to tie up the property in the first place.. so you can see how 6k will really get you no where..  Now it would be interesting to see if DHM would take your 3k based on only have 6k in liquidity.  Plus I believe based on previous post about the company you have to front the rehab and wait a few weeks for the draws to process so you need the rehab money up front.. almost all lenders will require the same thing.. do the work first prove it then get a draw.

Understand your desires .. But there is a reality check in RE there is a ton of hyperbole in this industry and I can see how folks get sucked in.. its the old AMway pitchs  get the life you deserve  etc etc.