Flipping using OPM, HML, no secondary funds

[Mason Jenkins]

Hi all,

Let me preface by saying I don’t want to wholesale and I’m sure everyone can imagine why. My dilemma is raising capital to fund the project. Hard money loans will cover a certain percentage of the cost, but how can I raise the other portion? I know the “classic” answer to that will be to turn to family and friends and the like but that’s not applicable in my situation, and I don’t have the credit for a mortgage nor do I have the funds myself.

I’ve thought about trying to get an owner-finance seller to cover the portion of what a hard money loan won’t pay, but I’m not sure a seller would go for that since I’d essentially have to convince them to pay to sell their house, if you get what I’m saying.

Would an equity partner be an option? I’m not too familiar with this one.

I can’t imagine I could use two hard money loans, they typically don’t want second position.

Any suggestions?

[Will Barnard]

Essentially you are asking how you can buy a home to flip with no money out of pocket and no experience. That is no easy road. Even a HML will need to see at least 6 months reserves and good credit for the first loan and you would then need a second via private money lender or some HML's who do both acquisition and rehab loans via first and second (expect to pay dearly for that).

With no experience, you best bet would be to partner with someone but you would need to bring the deal to the table for that, otherwise, you are not brining anything to the table.