Involved In Real Estate · Lake mary, FL · Member since 2014 · 26 posts · 1 vote
I have a potential flip opportunity that just fell into my lap that I am trying to creatively buy through private money or a hard money lender, the numbers are solid and are based on comps within 600 yds within +/- 200 sqft and within the past 6 months. Purchase price is 220000 arv is 280000 with very minimal work required (less than 10k) my issue here is upfront cash , the deals I have done in the past required less than 15 k and where between 135000-167000. Now I know its never good to try and bend over backwards to make a deal work but this is a great opportunity and I am very familiar with the area having lived in this city almost 10 years. Basically my question is, what would you all do to get this deal? I have again about 10 cash to play with and about 50k equity in my home. the hard money lenders I have approached have all told me minimum of about 40k down and I just cant make that happen on my own. any ideas? tips? connections to private money that can take my home equity as collateral. ?
Assuming your numbers are correct there is between 12k and 14k profit in this deal. I am assuming the commission is going to an agent, if you are getting 3% as listing agent then you can add another 8k to that, so between 20 to 24k. Sounds like a decent deal.
My suggestion to try to get this deal: Would the seller take 10k down and 1k per month until you flip the property? You can tell him you will give him a lot more if he waits 4 months while you do the flip.
I'd pass. You don't need to put your life on the line for any deal. Whatever about getting yourself into hock with a HML for a deal, putting your personal home on the line is crossing a line you should think twice about doing. This is noyt life and death or going bail for a buddy, this is just business! Getting into personal debt for a business deal of any kind is almost a double negative. Maybe you might look for an owner financed or subject to deal, that needs $10k cash to get it rolling>? Even if you only get $10k back on the flip, that's double yer money?