Advise on first flip, loans, contractors

[Rae Chris]

Hello BP

New-ish investor. Have one rental property, and trying to get into the fix and flip field. I have eyes on a property that I could get at about 120-130k after speaking with agent. In this area, ARV might be 3*, but it probably needs about 100-120k to fully rehab it.

I’m looking into lenders and because I don’t have enough money to put down, I’m interested in trying for a 0% down and use my first property as collateral. Is this a terrible idea? What are the pros and cons of doing this? What is the fine print with these 0% loans? Anyone done it?- what was your experience? Any advise?

Any recommendations on trusted lenders and contractors in the Michigan area?

Any general advice for a first time flipper?

Thank you all in advance!

[Ko Kashiwagi]

Hi Rae,

I know programs for 10% down for first timers but 0% down would be pretty difficult. I wouldn't say impossible as any individual can loan you money at the end of the day as a private lender, but most lenders won't even go to 0% with experience. It's also very risky to do 0% down, as even experienced flippers always mess up on budgeting/construction.