Fix and flip

[Brandon Jensen]

Hey guys I wanted to jump on and get some insight on ways to get my deals funded. I have all my systems and processes down to fix and flip a house tomorrow with the team I've built, i have private money lenders that want to invest but wanna see some skin in the game first. Does anyone have any recommendations on banks that will lend to lower credit scores? I have a track record of why it went down with dealing with two broken legs over the last two years with a few surgeries in between and can show proof of all my surgeries etc. Or is there anyone that would potentially wanna sit down and join my LLC as a lender and we can discuss terms and build a connection and do good business together!

[Sasha Mohammed]

Hi @Brandon Jensen

i think your best bet while you "get back on your feet" is to have someone else in your partnership be the guarantor for the loan. 

when it comes to fix and flip lending, your LLC will take title to the property. Everyone within that LLC theoretically is the "owner" of the property. However, not all of you need to take on the DEBT portion. That's where the "guarantor" comes in.

Talk to a few F&F lenders about % of ownership requirements to be the guarantor, and if there's a % of ownership which REQUIRES you to be a guarantor on the loan. 

you can avoid this headache by being strategic as to how the loan (and the LLC) is structured while you wait for your scores to improve again.