Questions about Fix n Flip Financing

[Collin Emerson Miller]

Hey BP community,

I am planning my first flip which I have estimated for March/April of next year. I am lining up financing and evaluating my options and have a few questions.

I have a few people that I know that might be able to act as private lenders, but how would you approach private lenders that you do not know for financing either on BP or some other medium? What would they be looking for in terms of the deal, history, or other info? Do you need the exact deal before giving a number they can invest in? Could it be like a tentative range of investment depending on the deal? Like 10-30K depending on the specifics? How many private investors are too many? 3? 5? 8? What would a private lender be looking for in terms of return? 7%? 12%? 18%?

Thank you

[Will Fraser]

HI @Collin Emerson Miller, nice work putting together your plan for your upcoming potential flip.

In my opinion do NOT bring in private money from people you don't know on your first flip.  If it was your 3rd, 10th, or 50th then go whole hog and bring in as many as you need (but keep it simple, dude).  However, for your first you'll be putting those people AND YOURSELF in unnecessary and unwise risks by taking their money when you don't yet know what your doing. 

Get one under your belt with Friend&Family money.

Then get another.

Then consider bringing in a private money person you don't know.

Then consider it a little more.

By deal 5 you're building a body of work WORTH the risk for people who don't know, like, and trust you already :)