Starting Out & Feeling Stuck! Needing Great Advice

[Shana Patrick]

Hello BP community! We are a highly motivated couple from New York, that have self educated ourselves in passive and active investing. We are currently seeking funding for our first flip in the Dallas, TX area, but are feeling a bit stuck.

We re open to other RE markets as well but we are coming across a frequent issue. Financing.

We have done our research on private money lenders and HML as well. We are confused if ll private money lenders need money down or are they more interested in the ROI they will receive?

Also, we feel like the number of properties we can flip are limited due to the price of the comps in Dallas and the surrounding areas. Will it only be beneficial if we bought a house from a wholesaler and flipped it to the average price of the comps?

Any replies will be greatly appreciated!

Thanks!

[Ann Bellamy]

Thanks for the shout out, Steve, not sure I can help here.  First, I am not clear on what they are trying to do

1.  buy a house in Dallas from the comfort of NY and resell to a Dallas buyer who will then rehab it?

or

2.  buy a house in Dallas from the comfort of NY and rehab it (while they stay in NY) and sell to an end buyer in Dallas

or

3.  buy a house in Dallas from NY and then travel to Dallas to rehab it and then sell to an and buyer.

I'm sorry if it's obvious to everyone else, but also I don't understand the question "Will it only be beneficial if we bought a house from a wholesaler and flipped it to the average price of the comps?"

As for hard money, a true hard money lender only cares what the current value of the house is.  There are almost no true hard money lenders.  Most of them require downpayments so you have skin in the game, @Shana Patrick.  On BP, a "private lender" is someone you know, not simply a non-institutional lender.  What I think you are asking is will the hard money lender need our cash downpayment?

For that, you need to contact Dallas lenders.  Since you are new enough at this that I don't even understand what you are asking, (sorry, I'm assuming it's the way you framed the question) I'm going way out on a limb here and say yes, they will require your skin in the game.  But call some in Dallas and ask them.  Make sure you tell them you are in NY and whether you are planning on being in Dallas.  Either way, it's a show-stopper for me, and probably for others.