Discouraged First Time Flipper

[Pete Perez]

Hello BPers,

I have been learning as much as I can from BP for the last 3 months and had started reading about real estate a few months before that. At this point I feel stagnant.

Over the last week I have been building my team of contacts to begin flipping houses here in Southern California (Inland Empire specifically). I have a investor-friendly realtor lined up who can help me estimate ARV of potential flips, made some wholesale contacts, made a deal analyzer for myself, and went to a real estate meeting for the first time last week. I can't seem to make the financing piece work. I don't have any family that will, or can invest with me, so I have been calling hard money lenders all day. None of them will lend to a first time investor with no money. All of the @Brandon Turner 's book on investing with low and no money down, but can't seem to make it work for me. I have a good paying job as an engineer, but just don't have the money saved up to invest on my own. Has anyone experienced this, and if so does anyone have any recommendations? I know its possible, but am just hitting the proverbial wall.

I really appreciate any feedback from the BP community. I don't want to give up on this, but just not sure how to proceed.

Thank you

[Nicole Pettis]

@Pete Perez

I understand where you are, because I have been there. It took me about a year and a half to get someone to help me. You just have to keep sharing your passion, goals and keep talking to people and eventually you will have someone that will be willing to help. 

My suggestion to you is if you have a good paying job, then start saving money, so you can have some "skin" in the game. If you have much personal debt, I would pay that off and then really save some money.

While flipping is hard, it is doable, but you do need to have the ability to either borrow or just have a solid emergency fund, because it will be needed. As for HML, they will lend on the deal. So if you going to them as a "newbie" without a deal of course they aren't going to lend. But if you go out there and find a solid deal and are able to put some skin in the game, then you might peak their interest.

A true HML isn't going to turn you away if you have a solid deal, they just won't do 100% financing. You will have to provide 20% down, plus points, plus 6 months holding cost. So things to keep in mind.

Biggest thing is you need to list your big goal and figure out the baby steps to get there. 

Hope this helps! Have a great week. 

Nicole