First time flip and need advice on finding funding
I am looking to get into house flipping as a starting off point with a long term goal of having multiple rentals and doing an occasional flip. I contact a company named "All in one real estate consultants". Apparently, they are fairly well recommended and basically loan you 70% of the ARV of the home you want to flip. Initially, they take up to 50% of the profit, which bothers me to a degree BUT I also understand they are posting the most risk, but after several deals, they take less, down to 10%, or so I am told. Has anyone dealt with them? Is this a fairly common type of company/lender in the real estate game? I don't really know any other way to get the money to start this. I have a construction background (built houses) and excellent connections for all that's needed to rehab a home. I own a home but have a small HELOC on it and don't want to tap my 401K. my credit is pretty good with a 740 FICO.
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Most hard money lenders are asset based, with pretty minimum credit required. 70% of ARV is pretty standard. you will of course pay percentage and points on the money, but never heard of anyone wanting a cut of the profit?