Funding first flip

[Liliana Gala]

I’m curious to know how you funded your flip deals, especially the first flip (or first few) as you’re getting started??

I found a single family home that I’m interested in as a flip. I have equity in my primary residence and some non retirement savings (but hesitant to dip into that… ) Interested in hearing your responses!!

[Will Barnard]

My first flip was funded entirely by private money lenders (people I knew). Funding with hard money for your first time will cost you your right arm and first born. It will be an extremely risky proposition and likely end up in failure. Your first is already risky enough since you lack experience, combine that with 100% funding and the risk is through the roof. That said, it can be done and done successfully if you plan in advance, build your team (contractors, subs, back ups, lenders, credit with suppliers, escrow/title, real estate attorney, mentor, etc.) get educated on finding (marketing) for deals, rehab costs, locations, market data (like crime rates, school ratings, population growth, job growth, etc), specific market insights like what is most popular and sells for the most in your area, etc