what would be the best loan to get on a flip?

[Allan Tamez]

I'm doing research on flipping a property. I have the lines of credit to pay for the GC and supplies. My partner and I will probably need to get a loan for about 60 - 70k to buy the home. My question is, what type of loan and from what type of lenders should we look for?

I understand that FHA is out of the question because of their flipping guidelines. From what I've heard conventional would be a good option but we'd like to avoid putting 20% unless necessary.

I was thinking of bringing in a partner that has a paid off home - in order for them to acquire a home equity line of credit.

Your wisdom and advise is greatly appreciated.

-Cheers

[Aaron Montague]

@Allan Tamez

Seller financing would probably be the best option.

Barring that, I'd see if your local banks are bundling purchase and construction loans. That would require 20% most likely however... but maybe not. Ask around.

You could probably find a private investor willing to put up the cash for 8% preferred return and some portion of the profits. Ideally they'd put up 90-95% the cash needed for the entire flip, but you seem to have some of your own, so make sure you don't get taken for a ride in that scenario.

Lastly would be the Hard Money Lenders. They are going to take a huge portion of your profit over a 9 month flip plus another portion up front. Avoid this route if possible.