Starting a flip with no money

[Kadisha Ledford]

Hi! I know this may sound like a complete newbie question but I really need help. I want to ‘fix and flip' a property but I'm not sure what borrowing route is the best to take. My credit isn't that great, and my brother is willing to co-sign a loan with me however, all the hard money lenders I speak with don't lend to individuals, only LLC's. Is there any way to get around this? Possibly with another type of loan program? I know of 203k loan but if I'm not mistaken those types of loans require the owner to occupy the property for a period of time which I would not want to do. Lastly, If the lender requires a down payment would it be wise to borrow the money for the down payment in addition to the loan for the property?

[Karen Margrave]

What is important to understand is that a lender is looking at their "risk". They want to be paid back for their loan. They are looking at the property (size of home, parcel, location, value, etc.) and they are looking at the borrower (experience, credit, ability to do the work necessary, etc.) What you lack in one area must be shored up in another. If you are strong enough financially a lender will be more flexible on the experience, etc. 

Experience has everything to do with being able to a property that has a big enough profit margin to be able to pay a hard money lender. Those types of deals take work to locate. 

I'm not saying it can't be done, only that it's good to understand what it is you are bringing to the table, and strengthen what is weak. Good luck.