Need Finance Help with Fix and Flip

[Cole Fisher]

Hi ya'll,

I'm going to ask for some help, but I would like to give out a tip as well.  Maybe you used this technique starting out, maybe not.  

Here is my scenario: I saw a "For Sale by Owner" property in my neighborhood, so I decided to call the number on the sign.  Turns out the gentleman on the other line was a wholesaler and seemed to be very knowledgeable.  This sent off a lightbulb in my head.  Did I just find a mentor?  

Anyhow, this man is a wholesaler/fix and flip investor and has a property that he is about to rehab.  He told me that he is selling the property as is for $97,500 or will rehab the house and list the property for $159,000 which I see value at $149,000.  He stated, he would be willing to mentor/collaborate our ideas on the project and let me use his local resources to rehab the property at a reduced cost if I were to purchase the house at the AS/IS price of $97,500.  His reasoning is that I will go to him for properties in the future and continue to help him grow his business as well as my own.  I'm sure he'll make a little extra money on the back end through this as well.  The house needs carpet/laminate floors, HVAC Unit heat pump, and minor drywall repairs.  Also, a new range, dishwasher and paint.  Estimated rehab costs $20,000.  He bought the house through a Sheriff's sale and has been in the business since 2007.  He told me we would be done the rehab work in 3-4 weeks and have the house on the market within a month.

Here is where I'm stuck. Financing!!! I haven't had time to read Brandon Turner's book, The Book on Investing in Real Estate with No (and Low) Money Down.  I told the owner I would get back to him in 2 days with a Yes/No to give him the go ahead to rehab the house himself or to buy the property as is and work together with him to rehab and flip the house.  I'm looking to obtain financing for both the property and the rehab work.  The banks I called are not portfolio lenders, so any tips would be great.  MY DEADLINE IS FRIDAY.

Should I pursue? Should I Slow Down? I'm 23 and like to get hands-on.  That's my best bet for learning the business.  Let me know what your opinions are! 

Tip:

For beginners: Dive in! Call the number on the For Sale By Owner sign! You may be surprised who will pick up the phone. I'm hoping that I pulled the right straw and now I have a mentor/business partner to help jump start my REI career.

Thank you all in advance!