Obstacle: finding a lender for first time fix & flip / Brrr

[Aleph Kennedy]

Hello Everyone!

I need advice on finding Hard Lenders that loan to a first time rehabber. What paths do I take when lenders require me to have at least 1 flip or Brrr under my belt before they lend to me?

I heard about bringing an experienced investor on board. If that's the only case - how so I split profits?

[Jason Wray]

Aleph,

There are programs where you do not need a Exp.Investor - or someone with flip/rehab seasoning.  Do you plan on flipping within 3-6 months?

[Jonathan Julian]

There are plenty of lenders that don't require experience.  We just completed our first.  The lenders were more curious of our numbers than anything else.  You may just pay a slightly higher rate. 

[Aleph Kennedy]

Originally posted by @Jason Wray:

Aleph,

There are programs where you do not need a Exp.Investor - or someone with flip/rehab seasoning.  Do you plan on flipping within 3-6 months?

Hey Jason! Possibly before this month out. I just stumbled on what appears to be a good deal

[Dave Schmidt]

@Aleph Kennedy there should be some local or small hard money lenders that would entertain your deal. A true hard money lender will be mostly concerned with the deal and the numbers. So instead of needing an experienced partner you may just need more cash to close. Or the lender may want you to shop out your rehab quote to a couple different contractors to make sure that the numbers are accurate. They can be difficult to find, but once you have a local lender that understands your business model and types of deals they will likely be able to fund most of your future deals as well. 

[Will Barnard]

Hard money lenders are everywhere and they have different criteria to lend so find one that works with new investors. The numbers of the deal are vastly more important in most cases. Aside from bringing in a partner, you can also go after private money lenders, seller financing, credit lines, or any combo of these to fund a deal.