Funding to purchase first investment property.....

[Christie Chanterelle]

Hello all! So recently i have decided to start my investment property business. I wanted to start with the fix/flip and in the future start with renting too. The problem is i am having trouble finding funding via banks. I am even having trouble with hard money. Anyone has any ideas they can share with me? Thank you.

[Michael Rogers]

Hey Christie - From what is posted above I'm gathering the following info about your situation.

Overview of Situation

1.  You are a stay at home mom with no current income.  (My wife is a stay at home mom and it is a HARD job that I could not do, so kudos to you for doing this job.)

2. You are new to real estate investing and have not been involved in a house flip before.

3. The hard money lender you reached out to is not willing to lend to you.  He/she has not viewed any of your prospective deals just says no I don't want to lend to you.

Since you don't currently have a steady stream of income (preferably a W2 income) it is going to be almost impossible to get a bank loan on a fix and flip.  This leaves you with a hard money loan, loans from family, or some sort of partnership with someone willing to provide the money and you do the leg work.  My guess is the hard money lender is probably concerned that you are inexperienced and hedoesn't want to take the risk.

Potential Solution

If house flipping is something you are passionate about doing and are willing to invest the time and effort, my advice is to find someone who is successful and in your market and offer to work for them for free or a low rate just to gain some experience.  This will do 2 things; 

1) let you see the full picture of flipping houses and determine if it's something you really want to do. 

2) Give you lots of experience so that you understand what a good deal is.  Teach you how to deal with contractors. How to manage these projects.  Learn the big risks and common pitfalls in the business.  It will also give you a house flipping track record that a hard money lender can review to determine whether they want to lend to you.

Hope this helps.  Best of luck to you!