First-time Flipper and Accountability posts

[Erica LaLonge]

Hi, all...I'll be doing my first flip this summer, and I'm going to post here often to update and for accountability. (No one around me is as helpful to first-time flippers as they make themselves out to be publicly.)

My goal is to secure private money for everything--possibly one lender for the purchase/rehab, and another for down payment so that I'm not coming out-of-pocket.  It seems illogical to me to spend a few years saving up funds myself as a single mom on a teacher's salary, when others have money sitting around that they can make easy interest on and a win-win for everyone. (I'm also a licensed realtor, and have researched for years and trust that I can analyze a good deal.) I'm not looking for a grand slam on my first flip...goal is to just get a deal done and if I walk away with $10-$15K I'm a happy camper. We'll go up from there. 

All input is welcome, and please feel free to connect and follow my journey. :)

[J Scott]

Having multiple lenders on a project is going to complicate things. First, most lenders aren't going to like the fact that you have none of your own money in the deal... perhaps if they are family or close friends, they might do that, but most others wont.most others won't.

Next, if you have multiple lenders, at least one of them will have to take a junior lien position, giving them less security should the deal goes south. Even if you are good at analyzing deals and find a good one, there's always risk that the market could change or that other surprises could arise. Most lenders are going to shy away from Junior lien positions because then they have little recourse should something like this happen.

Again, perhaps you have close friends and family who are willing to take the additional risk, but most lenders won't. You should take this into consideration when planning your financing for that first deal.