Financing Off-Market/Wholesale Deals

[Jon Jones]

Hi All-

Looking for some advice on strategies for acquiring off-market/wholesale deals without being able to purchase the place with my own money out-right. I have some cash set aside and I am looking to purchase my first deal. For my first deal, I am hoping to keep my risk as low as possible so I am looking to purchase a live-in flip. Although I have some cash set aside and could finance a conventional deal (<20% down), I know you have to be able to move fast and have cash to purchase off-market/wholesale deals. The reason I would like to purchase an off-market/wholesale deal in my area is because for the most part I can't get the numbers to work for properties listed on the MLS.

I am going to continue to utilize the MLS to look for deals, but am also looking to link up with experienced wholesalers to purchase a property. Since I don't have the cash to purchase a property outright does anyone have any previous experience with purchasing a property using private capital/hard money? Since this is something that is going to take longer than a typical BRRR/flip rehab project, is getting private capital/hard money to purchase the property and then immediately turning around to do a cash out refi (assuming the purchase price is 70% of ARV and the numbers work) to pay off the lender, a viable option here?

Your help is greatly appreciated!