First time flipper and Hard money loan.

[Juan Martinez]

Hi everyone on BP, I’m sooo exited to be part of this, a construction worker from Long Island, NY.  I just started listening to the podcast about three weeks ago on the LIE traffic 😞 back from work everyday, the hosts and guests are AWESOME!! very, very inspiring, motivating, educative and surprisingly entertaining. Thank you!

I started thinking about investing in real state about 4 years ago. So I started with the Podcast #200 Perfect!!! just what I needed, I realized that I am that guy that reads, informs himself and pretend to be investor, BUT, never got up and do anything. So, I signup for pro, started looking at houses to flip (short sales, pre-foreclosure etc.) and gathering as much information as I could from everywhere...again. All that, led me to a hard money lender office. The CEO tells me this:

"at this company you can do all types of realstate investments, if you want to flip houses, we can provide you with a 80% LTV loan at 10-12%, what's more, we won't give you the loan before we make sure the property you are buying is a good deal for flipping, we even have contractors that work with us for this, after you buy the property we'll make sure some kind of schedule of values is in place and only give you the money as the renovation progresses".

So I’m totally fine with this, VERY EXITED and TERRIFIED. Even thoug I have some experience in the construction aspect for working 8 years in high-rises with framing, drywall and logistics, I’m planing to use a GC for my first flip, only because houses are a whole different ball game and I have no experience of the part that is not construction related. Here is my concern/question: I am a little skeptical about the whole lenders involvement, Is this normal? It sounds a little too good, I got the feeling that I’m missing something. Please I need some advise. Anything. I really need to become a millionaire pronto!