Rehabbing & House Flipping

[Felix Ricarte]

Currently, I am looking searching a loan to search for my first property to fix and flip. I have a few questions for you advanced flippers, investors and real estate entrepreneur's.

1) How did you source for funds for your first flip? Loans?

2) How likely is it to get ahold of an investor for my first flip?

Currently, I am pre-approved with an conventional loan and a FHA 203K Rehab loan but came to halts due to the fact that it has to be my primary residence and thats not what I'm interested in doing. However, those are the only loans that I come across. I have excellent credit, any advice????

[Will Barnard]

1. Private lenders are people you have some type of current relationship with, family, friends, neighbor, doctor, dentist, accountant, etc. From there, you should tell EVERYBODY you can what you do and what you offer. The more people you talk with, the more chances of creating a private lender. You can not publicly advertise for lenders, that would violate SEC regs.

2. 3% is a very small amount which make it more difficult, but not impossible. You will likely have to find a very good deal with plenty of margin to make it work. You can accomplish this with private money, not with hard money.

3. Possibly, the key is that you need to bring enough to the table to warrant 50% of the profits. If they are coming with the experience and the cash, they may be looking for much more than 50% of the deal, I know I would be.

4. Get rid of this agent now, in fact, get rid of him yesterday! Hard money lenders are a dime a dozen these days, any Google search or search on BP will likely result in several hard money lenders in your area. You can also get referrals of these lenders from other investors ate RE meetings in your area. There is no legitimate reason why a RE agent should not give you the hard money source, NONE! That right there tells me this agent only cares about his own self interests and the very reason you should NEVER work with him!