loan advice, I need help

[Brian Salinas]

I have absolutely zero experience as an investor, looking to do my first property as a flip. I found an amazing off market property that is priced very well. Comps look great. I used comps with similar size sqft, same # bedrooms/baths, same neighborhood. updated comps are 40k-50k more than the seller is looking for. comps are in the 220-230 range, seller is asking for 170. lets assume an AMV of 225. After walking the property, i evaluated 20-25k in updates and repairs. lets go with 25k. With closing costs, and fees estimated at 7k, seller is asorbing some of that cost luckily. its a good deal! however I am completly broke. I live check to check and i have debt that im paying minimum payments on. my credit is in the low 600's because of it. I had a 6 month gap in between jobs. I lived on credit for those 6 months and now its hurting me. How can I get a loan for this deal? is it even possible to get a loan in my financial state? What steps would i have to take to finance this deal? do i have to find a partner, or do i just go with a hard money loan and show them all my finances and hope for the best? I know the obvious is to improve my financial state, but thats what I am trying to do with this deal! I only make so much. I was going to start a second job, but then I came across this oppurtunity. i can make about 20k with this deal which is what a second job would pay me in a whole year. i need advice on how to get a loan for this type of deal. btw im in Houston, Tx.

[Andrew Taylor]

You need to double-check all of your numbers. Using the 70% rule, your purchase price should be {225k * .7} - 25k = 132.5k. So right off the bat you're overpaying by 37.5k. And that's if your comps and rehab estimate are accurate {not likely, as you yourself said you have zero experience}.

Your credit is not an issue; hard money lenders only care about the deal, not the borrower. But no lender will give you money based on the numbers you're showing. I know that's frustrating, but you just need to keep looking.