Financing a rehab and flip

[Moises Silva]

Hello, 

My name is Moises. Recently in this year I sold my first home and relocated to Houston in which I purchased another primary residence. I been researching and doing homework on potentially taking on a rehab project and flipping it once done, I have a few properties/areas in mind.  I spoke to my lender and they advised me to wait a year or 2 before applying for another mortgage since I just purchased my primary residence.

I was thinking of looking into a Hard Money loan instead of traditional lending in order to start this project, in hopes of selling the property once fixed and paying off the loan. Any recommendations or advice will be truly appreciated.   

[Mike Klarman]

So, Houston is tough. Very competitive. None of the MLS listings work and the off-market properties are in control of the wholesalers who are very greedy there for some reason. They are selling you a bone with very little meat on it and ppl take it cause it's that hard to get into something there. I looked into the Texas markets: Dallas, Houston, SA. Same story in all three. Idiots with cash overpay and it prices out the smart investor.

You'd have to acquire properties at the auction/sherif sale level.  That gives you the best price on your asset and you avoid any market competition.  You then can apply for financing after you close in cash - so you have to be liquid.  You gotta pick something up for like 100k cash that is worth 150k or more as-is and fixed up 300k+.  Then after you close apply for delayed financing which cashes you out of the purchase and includes escrowed rehab funds for the fix.