Funding that First Flip

[Daniel Del Vecchio]

Hello! 

I am brand new to real estate. I am looking to start by flipping houses. I am currently going through "Investing in Real Estate with No Money (and low) money down and I thought it would be a good idea to get some ideas from others and talk through ideas as I make my way through the book. My original thought was to get a traditional bank mortgage, pay the down payment myself and extend my lines of credit or pay out of pocket for the rehab costs. Is this ideal for my first flip? Should I reach out to a hard money lender? What have you or others done that you think work well for someone with little experience? I am living at home (with parents) still to save money so I am not intending on using an FHA loan but that may change depending on what is out there and what kind of funding I can (or can't) find. I don't have a network built up yet, I am working on that but it is unlikely I will have a money partner for this first flip. I also know it will depend on the deal I find. I don't have one yet but I am trying to get different ideas for when I find that deal so I am ready to move forward and have a basic strategy.

Thank you for any advice and guidance! 

[Odie Ayaga]

If the property requires a great deal of work there's a good chance it won't qualify for a traditional mortgage. If you have little experience then yes I would suggest you talk to and look into hard money lenders. To begin with it gives you experience in dealing with professionals in the industry even if you don't end up getting a loan, but it can be a wake up call for a lot of newbies who don't realize the costs associated with flipping. They make a good first partner for newbies who aren't yet qualified enough to be the steward of other people's money.