Private money lenders

[Ryan Wall]

I am looking to start flipping houses. I am having trouble getting financing due to the fact I don't have experience. I do have some hard cash to put down. Does anyone know of any lenders who will lend to new investors? I am located in upstate New York. Any help is appreciated.

[Chris Mason]

Originally posted by @Ryan Wall:

I am looking to start flipping houses. I am having trouble getting financing due to the fact I don't have experience.

I do have some hard cash to put down.

Does anyone know of any lenders who will lend to new investors?

I am located in upstate New York.

Any help is appreciated.

I've seen people start with "light" or "cosmetic" flips, so they could get vanilla Fannie loans which require no experience. Granny homes - grandpa died 20 years ago, and most maintenance has been deferred since. The kitchen is 40 years old, but works. The bathrooms are 30 years old, but the toilets work even if none of the kids that inherited the thing are up to scrubbing them to it presents well during showings to retail owner occupant buyers (anything that's a cheap fix, that wasn't done prior to listing, is GOOD news for you because it's going to scare off the nesting newlyweds that can/will offer a price based on emotion). You're not going to get rich overnight with this, and there's a good chance you keep it as a rental, for a while or for several years, because the ARV just might not be there relative to your purchase price and what you put into it (it's your first one, so all your rehab estimates are wrong anyways), but boom now you've got a deal or two of experience under your belt that the HML like to see. Or maybe your rehab estimates are wrong in the other direction and it ends up being a better flip than initially expected after all, who knows.

A lot of folks that set out to do a "buy and hold" deal become flippers, and a lot of people that set out to do a "flip" deal end up with a buy and hold deal. If the value is there, it can be extracted in one way or another. Don't have your heart set on only one method of extracting value.