CAN I DO THIS AS A FUNDING STRATEGY FOR MY FIRST FIX AND FLIP ?

[Jonathan Hernandez]

Hey Guys. Alright some Advice from those of you with knowledge in the field would be appreciated here. I have my mind set on getting my First Flip Done. Problem is like many of us here, No capital to fund it. So i was thinking, A) Get A HML just for the Down payment of the house and Use an LOC to fund the rehab? If thats not possible B) Get a private lender again just for the down payment and an LOC for the Rehab. why? well because id figure id have a smaller amount to pay high interest on for HML OR PRIVATE lender and because i feel an LOC for rehab seems better since i only use what i need and pay back what i used instead of taking out ONE HUGE loan and paying interest on that huge loan. im thinking i may only be able to do this using the “B” strategy if the HML interferes with getting an LOC. since id potentially have 2 loans on file. like i said this would be my 1st flip so some advice from those of you who would know if i can actually try this out would be appreciated. if not then what am i looking at for plan “C“ C) suck it up, Get it all under one loan and pay the high interest? if thats the case then ill do it. this just came to mind, thought it be intersting to try it out, Again if its within “THE RULES“ of the lending realm. Thanks in advance for any insight on this.

[Will Barnard]

There are no hard money lenders I am aware of in CA that will lend you 100% of your purchase price. Then finding someone willing to lend 100% of your rehab and holding costs in second position - just not very likely and if they are willing, then you should not take the loan as you are playing with inexperience which is dangerous for both sides.

That said, there are ways to fund 100% but it takes creativity, one heck of a good deal spread, and a borrower with, at minimum, some education in the arena along with some skill sets and serious savvy.