Financing/Seasoning

[Lee S.]

Trying to figure out how to best finance deals if I'm able to locate them locally.  I have enough cash to do a traditional finance and rehab, but that won't work when i'm trying to find off market deals and close fast with a motivated seller.

If I work with Hard Money, is it possible to buy, fix, then refinance into a conventional 30 year loan within 3-6 months without seasoning if I start with an HML?

How difficult will it be to get a HML to work with me on a first flip?I'm hoping that my wife and I's combined good income plus being able to put more skin in the game will get me past my "newbie" status?

I've also thought about going to family and making them a private lender, but I would really prefer not to do this, at least until I have a few deals under my belt and the confidence I won't screw it up.

I would like to have my financing lined up before I start working on a marketing plan to locate the deals, I would hate to find a great deal then have no way to take advantage other than wholesaling it.

[Travis Sperr]

If you work with a Fannie/Freddie direct lender, there are no title seasoning requirements - i have used hard money to buy, fix, rent and refi in as little as about 6 weeks. 

To your hard money questions, just be honest and put people on your team that have experience in the areas you do not. Be responsive to the HML requests and have all of your ducks in a row - comps, banks statements, taxes, repair budgets, what agent you are using, your agent and contractors experience.

Talk to a few lenders and find the best fit for you. After you have been successful on a few deals look at working with private lenders at a lower cost. A good HML isn't going to fund a bad deal for you, we are in the relationship business and want to do a lot of deals together, another set of eyes on your investment. Your family may not know what to look for and a bad deal makes for a bad Thanksgiving!