Your 1st flip to your most recent...FUNDING

[Matthew Rollo]

So here I am wanting to make the most of the new year ahead and the questions I am always interested in for investors who have been flipping houses for a while is.....

How did you fund your first flip? How did you fund your most recent flip?

I am curious to see the difference, if any, so when the time comes this year I know what I need to have to begin the process myself.

Better to Flip with a LLC or using your own name?

Any information you have for someone looking to do their first flip, other then finding the deal, would be a great read.

Thanks in advance!

[Kaynea Bingham]

Hi Matthew!

I think this is an awesome thread. I am such a lurker on Bigger Pockets! I love reading the post in the forum and I find the information that people share to be very valuable. Okay, so here are my stats.

I am currently working on my 2nd flip here in Orlando. My first flip was a success and I was so grateful for the research and preparation that I did prior to starting my flipping business. Although, I am a active licensed real estate agent, I have a real passion for flipping. However, I know there is currently a trend towards wholesaling. And, in my humble opinion, I believe wholesaling is a lot more challenging than people are really sharing, and for my own personal choices, flipping feels like the right fit for me.(Everyone has to find their own way).

To finance all of my deals I used Patch of Land and I discovered them here on BiggerPockets. I like that they gave me a chance as a first time flipper and they seemed user friendly. In addition, they funded my deals with patience and walked me through the process as a newbie Investor. Also, each time I close a loan with them, they give me better rates.

Although, I could have flipped in my own name, I like my privacy and like to keep my business separate from my personal life. I did create a LLC and I close my investment properties in the LLC's name. For me it provides enough comfort and space between me and my company. (Plus some hard money lenders require you to have some sort of corporation or LLC in order to fund, but some do not. Be sure to check with your lender). By me closing in the LLC's name, my credit was used as a guarantee on my loans, but they didn't show on my credit report as a open credit line. (Please understand if I had defaulted on the loan, it would have ultimately went on my credit).

Honestly, my biggest challenge is finding qualified, affordable, ethical contractors. I prefer to work with licensed general contractors and people who understand my vision for the flip. Contractors are notorious for not staying on their timelines, and I find it difficult to keep them on my time schedule. Anyone who knows a good contractor, please PM me and share. :)

For 2017, I am looking to find a few buy and hold multiplex’s because I want to continue to grow my portfolio. In addition, I would like to ultimately have enough money to fund ALL of my own deals, even though I know this will take time. I definitely will continue to flip and find great deals.

I think Central Florida is a great community to invest in and we are definitely in an upward transition in many industries in the area. I will continue to stay plugged in to Bigger Pockets and feel free to ask me any questions. ;) I hope that helped!