Fix and Flip with Somebody Else's Money

[Grant Greene]

You're a fix-n-flipper, and you're successful.  The only thing keeping you from acquiring another property is you're waiting for your current project to sell.  Another downside to it is you have to come up with 25-30% down to acquire a property, and then you have to foot the bill for all the renovation costs - that's why you have to wait for the flip before you can acquire and get started on another project.  Not any longer. 

For an experienced fix-n-flipper, you may have the ability to acquire the property for 5-10% down and have all the renovation costs financed.  Let's use some real numbers from a friend's project that was recently completed - she used a hard-money lender and went the traditional route of 25% down on the property and footed the bill on the reno costs.

• The property cost $320K - she had to come up with $80K out of pocket
• The renovation costs were $120K - all out of her pocket
• All told, she had to tie up $200K until the project was completed and sold

Had she gone with this new way, she could have acquired the $320K property for $32K (down) and had ALL $120K in renovation costs completely financed.  Keeping it simple, what would you rather do: tie up $200,000 or $32,000?  You don't have to answer that. 

The financing aspect is just PART of what makes this new way so advantageous.  Let me throw out a couple of other features: no income qualification (yes, you read that correctly), no pre-payment penalty, ability to run multiple projects for the same amount as running one project in the traditional manner, lower interest rates, and so on.  

This is only for non-owner occupied projects starting at SFRs and going up to 50-unit properties, and it's available in all states but ID, UT, NV, ND, and VT.  

I'll leave you with this thought: with the way this financing is designed, if you had $100K in liquid assets, you could borrow up to $300K (and higher depending on experience) to use on one project or multiple projects.  In the traditional way, how far is $100K going to get you (and how long do you have to tie it up and preclude yourself from getting another project)?  This is revolutionary!