Flipping biz funding model

[Judson Heartsill]

Hi folks,
We are starting up a rehab resale operation in Houston. Our first deal will be done with hard money. We are bringing some skin into the game as for this flip we did not meet a 70% Ltv. It's becoming apparent this will not be a sustainable funding model, as it brings in need for additional funds outside the original hard money loan. We intend going forward to seek out deals where we could meet the 70%Ltv consistently, which should hopefully allow each loan to fund the entire deal and keep our bucket of operating costs and holding costs much simpler. Plus it just seems like a better way to do business especially since we want to transition to private money long term.
Would be grateful for thoughts from the crowd; any other ways of doing it which have worked out for people. Is it possible to run this type of operation by getting gap funding frequently or does that strategy become unsustainable at some point? Plus, how sweet is 2nd loan position for such lenders?
Thanks for your thoughts,
Judd 

[Ned Carey]

@Judson Heartsill welcome to BP I see this is your first post.  No one is  going to want to take a 2nd position on a flip other than perhaps a private lender. (Truly private Not hard money)

• some options are
• Build and save cash
• find a private lender - friends family or associates that trust you because they know you,
• Partner on deals
• get a HELOC on your personal residence
• Get a bank credit line. based on your personal or business credit - probably the toughest option