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!!

[Steve S.]

You have no experience.. no track record.. no portfolio and you have nothing invested in the property yourself?

You get points for finding a great property in a great location but after that I'm afraid your chances may be slim to none and slim is already walking out the door.

If the property is as great as you say it is, liquidate everything you have and flip this property there's a large return in it for you. If you have absolutely no assets, you're either going to sit on the sidelines and watch this deal pass you by with regret, or perhaps you could bird dog this off and try and get a commission, and perhaps even a wage for your next gem as you rehab this house for someone else.