How Are You Covering Down Payments & Closing Costs for Your Fix & Flip Deals?

[Deborah Wodell]

Hey everyone,

When it comes to fix-and-flip projects, the down payment and closing costs can add up quickly. I’m curious how you all manage these upfront expenses. Are you using hard money loans, tapping into savings, partnering up with others, or maybe using seller financing? I'm hoping to hear some creative ways people are handling this part of the process. How do you make sure you have enough funds to pull the trigger on a deal?

Would love to hear what’s worked for you and any tips you have for making sure the funds are in place to lock down a great deal. Looking forward to learning from your experiences!

[Chris Seveney]

Quote from @Deborah Wodell:

Hey everyone,

When it comes to fix-and-flip projects, the down payment and closing costs can add up quickly. I’m curious how you all manage these upfront expenses. Are you using hard money loans, tapping into savings, partnering up with others, or maybe using seller financing? I'm hoping to hear some creative ways people are handling this part of the process. How do you make sure you have enough funds to pull the trigger on a deal?

Would love to hear what’s worked for you and any tips you have for making sure the funds are in place to lock down a great deal. Looking forward to learning from your experiences!

 We have a savings account where we split up into different buckets (from our w2 and passive income) and one bucket is for real estate and when we have enough to acquire another asset we will consider it.

I am not a fan of borrowing 100% of the transaction costs including closing costs as it will be extremely difficult to make money many times on those types of deals. It also could limit your exit strategy if the market softens

seeing a lot of fix and flippers in kc as an example getting crushed due to this