can you successfully flip with OPM

[Louis Van Der Westhuizen]

Hi BP community

I've gone by the assumption that the only way one can do well in the flipping business is if you have cash to buy good deals. I know HML may be one source of financing but I'm not sure how one could get deals, go through the due diligence needed to satisfy the HML and still close on the deal - for example on auction it would take too long to get the funds to be able to bid right? So as a new "wanna be" flipper what should I do to get my hands on a viable flip and still use OPM to finance the deal (both the purchase and the rehab cost). I have about 60k of my own money available.

[Dan Barli]

@Louis Van Der Westhuizen With REO's and short sales, you would have to submit your offer to the sellers for acceptance first, so you can use a financing contingency. If you are buying at the auction, at least in NJ, they want the payment in full within 30 days I have seen. You have to put up the 25% down as non-refundable, so be careful to make sure you have your closing lined up. The last thing you would want is to lose the 25% down if your lender is not ready. Other options are to bring in partners with cash or if you have access to a LOC, that could be another way to finance it.