Need capital for down payment

[Account Closed]

Hello everyone, Because I am too interested and into this, I wanna jump into rehabbing without any capital on my own. I have been studying the process for a while and feel confident enough to start fix and flip. But first thing that holds me back is financial, I have been on the phone with the lenders who can lend mr 90% of purchase price means I have to come up with 10% down payment and I’m looking at somewhere between 20K - 25K. I received a phone from the broker guy from Sprout Financial, he was very professional and he dedicated his time explaining the details to me, but after I have read through the comments on BP about this kind of funding I guess I want to step backward because of my stupidity I thought 0% interest for 12 months is a great deal but I did not realize that it will hurt my credit badly. So at the first place when I thought I would use funding I received from Sprout Financial for down payment, that is going to change. Now I am thinking about personal loan, short term loan. Because I’ve never done this before, and in my lifetime I only have auto loan so I have no idea what it takes to get the loan especially when it’s over 20K I need advice if anybody please help guiding me. Should I go to the banks I’m banking with? for example WellsFargo / Chase / Bank of America? I do have auto loan with Capital One and never once late or missed any payment. Or I should look for another source? Please advice. Thanks a lot.

[Cody Evans]

I am unsure on this but the first thing that leaps to my mind is a home equity loan. I am not sure if you can take that home loan out and then get another loan using the home loan as a down payment. It seems really risky. If you don't have 20k what are you going to do if something goes wrong with your property? Bills are more than expected, you lose a tenant, or you need to make repairs?

My thought is that you should look into your personal finance situation first and come up with the down payment yourself. How much education have you got on real estate thus far?