First Flip--Please assist

[Michael Erdman]

Looking to purchase my first flip? Have a house in Louisiana that is currently on auction.com.

Reserve is 173k, comps are 230-240k. Needs about 5-10k of work.

My issue is getting funds. All the banks want 20% down. Any advice? Finding a private investor that will assist is harder than expected.

[Jeff V.]

@Michael Erdman

Funds come from Yourself, then family then friends ect... Once you have a track record the private money will come from your extended circle and people you meet at your local REIA meetings.

Once you have a track record, you could also reach out to hard money lenders for funding.

Note about auctions...  beware the auction fees, read the fine print on the site before bidding.  Some require you to put down money just to even bid and then get re-imbursed later if you didn't win.  There are also fees for if you win called buyers premium... just account for those when you  make the bid and don't get blind sided.

On a side note, I purchased one last year that was on an auction site... I think it was auction.com can't remember for sure but I just waited for it to come off the auction site to be listed on the MLS. I snatched it up a year after it first appeared on the auction site. It kept going on and off of the auction site saying under contract and I didn't want to play with them so I just waited to see if it would sell. It never did so when they listed on MLS I bought it. I didn't have to pay all of those "Auction Fees" either. In a hot market, this wouldn't work probably but I'm in a rural market small town.

Also once it goes on the MLS, you can then view the property just like any other MLS listing prior to buying.

I second what @Braden Smith says...  There are no 5 - 10 k rehabs... there will be things that are found once you open walls ect.  Also if this is your first deal and you estimate 15k in rehab, I would have double that on hand before starting the project.  Like I said, you will hit some snags...  hopefully it will be better than my first deal! (I hate Termites!)  No matter what the situation is you have to make it to the finish line...  nothing kills a deal like running out of money and ending up with an unfinished rehab.

Tip - People will be more inclined to help if you had a profile picture.

Hope this helps.

Jeff V