Where should I go and get the money for my first flip?

[Neal Ward]

I have a couple rental properties, but now I’m getting the itch to start flipping. My credit score is around 780 and I have been on my job for over 5 years. I’m wondering if should go to bank, mortgage broker, or hard money lender. What’s my best option?

[Brian G.]

@Neal Ward

You can try getting an unsecured personal LOC but I'm not sure a bank would do that without a proven track record. As Tyler mentions above a Heloc (secured by your property) could help you secure a HML. It depends on how much you can access on a Heloc and how much you need to fund your project. For example, if you can secure a Heloc for $150k and you only need $100k all in to complete a flip in your market, you can self fund with your Heloc and save on borrowing costs. Alternatively, if you work with a HML, you will automatically have a 2nd set of eyes looking at your deal before they will fund it which adds more safety for you.