No skin in the game? Is it possible?

[Mike Sands]

Thank you to all who read this in advance! Now my question follows.. I’ve done an extensive amount of research on how it works and I’ve got a great understanding of the basics I’m a new investor and I’m extremely eager to get my first deal underway. I live in the Philadelphia area and I found one of the ugliest houses on the nicest block! Area is full of rehabs and is going through a great deal of gentrification! Here is the deal as follows.. 4bd 2.5 bath 2,800 sqft in the heart of the city of Philadelphia $105,000 asking. $389,000 ARV $75,000 in repairs Comps in the area are going for $579,000 and right next door sold for $420,000. If my HML lends me at 65% ARV that’s $252,850 I only need $180,000 to purchase and renovate to bring the value to. It’s always a good idea to add a little “I.C.E” funds to your repair cost Incase anything goes unplanned. So i would want to throw in another $10,000 just to be on the safe side of things. That brings my total to $190,000 Which is very far below $252,000. My exit strategy is to fix and flip this is a very sought after hot area in the city of Philly, would a HML be willing to grant me this deal with none of my own money? That is literally the only thing worrying me, I don’t have the credit or funds to cover a 10–15% cost up front (skin in the game)I do know most HML will want points and other small various upfront cost I can come up with that.. but I would love to get a 100% financed deal under my belt, again this would be my first. With how I structured this deal is it possible to get 100% financed? Any advice or tips would be appreciated! Thank you all very much!!

[Brent Coombs]

@Mike Sands, join the queue. Everyone wants to "invest" with no money down! If it was that easy, the property in question would already be "sold"! Enter: The inevitable guru pitch, which suggests that if you pay the guru a miserly thousand or three, you'll be given all their no-money-down secrets! (Except, you'll already be out of pocket thousands, with no deals!)

Every No-credit-no-job-no-money-no-worries pitch I've come across starts with suggesting that it's easy to start with Wholesaling, which would mean that you wouldn't be buying this property for yourself, but, you just need to get it under Contract for next-to-no deposit, and then assign that Contract to an end-Buyer for thousands of dollars more/profit on closing day!

Then all of a sudden, you will have magically started making "free" money.

Never mind the fact that those same gurus already know that 95-99% of their paying clients will not succeed at Wholesaling, because, it's just not that easy! [But, they'll have been paid!].

Obviously, someone will pay for this property. Know anyone? Here endeth my rant for today...