Found the deal just need credit & cash money. Any suggestions?

Question

Hi Bigger Pockets!

I'm sort of new here, I've been a silent observer for a long time....

So, I am a licensed agent In Delaware and I've been a member of BiggerPockets for about a year, I listen to the podcasts (I'm about halfway through and I have never learned so much!) I've bought and am reading some awesome books (The Book on flipping houses - J. Scott) and I have finally decided to push my analysis paralysis to the side and take action! I have become a pro- member and I analyze deals daily.

I've found some that I believe are awesome flips.  The next step would be to make offers to lock in the deal. Here's where I am stuck.  I have less than perfect credit and pretty much no cash to put into the deal with a hard money/private lender/crowd funding.

I could partner with someone, and have a few offers for partners for any deals I come across, the issue is I need a partner who has ALL the funds, and none to my knowledge meet that particular criteria.

I'm not greedy, so I could wholesale it, but I would need to to make an offer, which means I still need a pre-approval -- also many of the deals are REO's so I'm not sure if wholesaling is even an option.....

Any suggestions??? Thanks in advance!

Jay Hinrichs · Answer

Act as a RE agent that you are.. get a buyer if its a great deal that would not be hard.. sell it to them make your commish then get the list back  rinse repeat about 20 times a year and make your self a few hundred grand with NO MOney out of your pocket other than normal business expenses anyone would have when you have your own business that provides you a 6 figure income.

on the credit side I don't think folks realize how devastating it is to let your credit slide.. at least when you then want to get credit.. if there is anything for younger up and coming folks to hone in on is the disability you place yourself in when you cannot manage your personal credit and you let it get bad.

Account Closed · Answer

@Holly Palmer  My partner and I would like to get together with you and discuss our goals and how we could work together.  We were actually given your name by Jamie Swalm, who said you'd be a good person to work with.  Email us some dates and times that you're available (preferably after 5 if possible) so we can talk.

Holly Palmer · Answer

Wow, these are great (and fast) responses, thanks so much!

@Jay Hinrichs --That's a good point, I could act as the agent in these cases, and earn a commission, But what I am really looking for is my own experience in addition to the money.  In order to work with most crowdfunding/hard money/private money sources, they want at least two deals under your belt in order for them to trust you.  As far as the credit situation goes, you are also correct, there is alot I wish I would have learned sooner, but everything happens for a reason and its a work in progress.

@Eric Armstrong -- I would disagree that there are not good MLS deals.  I would argue that there is always something that many others have missed for one reason or another. One benefit of direct MLS access is the many filters I can use in different combinations in order to find hidden gems.  I will definitely look into the DelREIA funding, as well as seeing if I can contact a flipper about the deal.  Those are good suggestions.  Depending on how it works out, perhaps I can structure the agreement in a way so that I can be apart of the process and get some experience.

Thanks guys!

Eric Armstrong · Answer

if these are great deals on the MLS I can guarantee you the experienced flippers in Nee Castle County have already seen them and if they are still available, they are not great. Great MLS deals don't sit on market more than a week around here. Now if you have inside info like you know a seller will take much less than what the list price is then find a flipper and bring them the deal. You can get a finders fee, 1-2k, and then I'm sure they will let you list it as well to get your commission like stated above. If the deal truly is outstanding, meaning you could buy and fix for 65% or less of ARV, you should have NO problems finding money. DelREIA has a funding division. Find a flipper, share what you think are deals and if they agree, LOCK EM UP!! Good luck.

Holly Palmer · Answer

@Rumen Mladenov  most of the deals are moving fast for sure (but they do exist!) which is why having my financing in order is such a priority right now.  Working on making that happen!

Travis Hunter  Yes! I saw that post. Awesome! A 3 bedroom listed as a 2 bedroom.  Exactly the kind of treasures I've been searching for.... "Less desirable" properties are many times entered incorrectly by agents, and human error can work in your favor =)

Rumen Mladenov · Answer

I would have to agree with @Eric Armstrong, good deals do not last on MLS in our market. Last one I found, I put an offer close to asking price the day it was listed, and got it under contract the following day. Anything else that catches my eye on MLS is already under contract by the time I ask my agent to see it.

Found the deal just need credit & cash money. Any suggestions?

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