Using hard money and personal loans

[Sally Hanan]

As a first-time flipper of a SFH with a goal of making at least 10k on the project, would you recommend financing everything with hard money (10.6% and 3 points, loan for $189k, interest $1,717/month) and a personal loan that covers the cash to close and hard money interest ($993/month)? I have a good contractor to work with.

I'd much rather present the contractor's portfolio to private investors and pay them the principle and interest back at the end, but I'm trying to come up with alternatives if that doesn't work out.

Purchase from a great wholesaler: 150k

Closing costs: $7,605

Cosmetic rehab: $30k

ARV: $225k

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120 day in and out average in Austin, interest $10,840, another 4,427 if sale is slow