sick and tired of being sick and tired

[Nalo Coban]

I NEED to start creating cash flow, however I keep getting stuck when it comes time to get funding...

I have all these questions:

1-should I concentrate on my first flip or should I just start with one SFH, rent it out and move on to the next?

2-Who is lending to LLCs with little or no money down?

3-If down payment is required, what is the best way to get the down payment without using my own money?

4-should I pay off some of my personal bills to get my credit score up or use my LLC credit (which doesn't have credit)

5-what should I be looking for in a bank when I open my LLC bank acct?

[Jon Holdman]

1. Fix and flips generate big chunks of cash. If you do a good job, meaning buy cheap, stay on budget and sell quickly for the expected cash. They can lose big wads of money if you mess up. I had a borrower default doing a fix and flip. I believe he lost about 30 grand on the deal. And fix and flipping is a job. You have to put time and effort into the job or you don't get paid at all.

Rentals generate small increments of income. But don't require much work to generate that income.

Both of these require you to have significant chunks of your own cash. So neither works very well if you have no money of your own.

2. Nobody

3. Save it up. Rentals are all about cash on cash return. Getting 10% cash on cash return is pretty good. Even if you can manage a low down payment deal, the extra interest charges from being over-leveraged eat up your income.

4. Fix your credit. In order for your LLC to borrow money the lender will look at your personal credit and require a personal guarantee.

5. I'd find one that is doing investor real estate loans. Opening a checking account is the first step to building a relationship.