Seeking Advice on Funding a First Flip

[Matt Thomas]

Hello,

I'm new to the forum and was looking for some advice about how to approach my first (hopefully of many) flip.  I live in Massachusetts, which is where the property is located.  It was owned by a family member, who has passed away.  The estate has not been probated and the house is in pre-foreclosure.  It has been vacant for about a year and is pretty distressed to say the least.  I can acquire the house from the estate, but I am not sure the best way to approach financing.  The house would probably be worth around $230k when finished.  About $65,000 is due on the note and it would take about $75,000-$100,000 to fully gut and rehab.  My goal would be to sell the house afterwards.

I'm just wondering where to start on financing?  Will the bank holding the current note generally finance something like this?  Is this something that I can approach another local bank with to get a rehab loan on or do I need to go to a specialized lender?  I do have some cash for a down payment and also equity in my own home, but I'd like to avoid using that, if I can.  I'm just a newbie looking for a nudge in the right directio, so any help would be greatly appreciated.