Creative Financing for Fix and Flip

[David Prince]

Preparing for a new fix and flip project in Chicago and wonder if anyone has found success in financing a project with 100% OPM (purchase and reno)? If so, how did you connect with your lenders? Did your lender require a specific Loan to ARV ratio? Average interest %? What creative financing terms worked well for you?

Some I've considered:

1. Interest payments plus % of profit after sale

2. Points plus interest payments

I'm looking to this route to get started and build some reserves so I can pursue less costly funding options. Unfortunately, tapping family isn't an option and no HELOC or self directed IRA to tap either. In Chicago, not many sellers willing to finance either so looking to other options.

I've been working this direction for a while now but recently got an unexpected nudge to take action.  So, Im taking action!