First Time Flipper With Questions on Funding!

[Frank Palmer]

Hello everyone, 

Myself, my brother, and My dad just started an LLC and plan to buy our first home to flip here in the Los Angeles region. We are all independent contractors with enough time on the side to begin flipping houses which is our overall goal. We are very new to the game and have questions when it comes to getting funding to flip our first house.

Back in January we were working with a private lender to get approved for a loan.  She was great but said that we would have to live in the house for 8 months before we sold it or else she would lose her commission.  We obviously did not want to take 8 months to flip a house and did not want to do her wrong by flipping the house in a shorter period of time so we moved on looking else where.  

My overall question is,  where is the best place to seek a Loan where the lender would know that we plan on flipping it as quick as possible.  We are trying to make relationships so that we are able to grow our team on good terms.  So overall we are very unsure where to get the money to buy our first house and if anyone has any insight or tips that you could pass on I would greatly appreciate it.  Any and all information on flipping houses for the first time in the Los Angeles region is welcome as well!

Thanks!

Frankie Palmer                                                                                                                           

[Louis Jeffries]

@Frank Palmer

Hi Frank she was not offering you a private money or hard money loan. And there are a few companies (very, very few) who penalize their loan officers for loans that sell to fast because as correspondent lenders they may have to repay their premium. But that aside, it is illegal to give a hard money loan to a borrower who is going to live in the house. Everything she is saying is leading you down the wrong path and maybe even causing you to lie on the application. If your intention is to flip the house and not live in it. You might be enticed by the low rates and fees being charged. That is because you are not doing a hard money loan. She most likely had you doing a conventional or FHA loan that requires you to live in the property.

Bigger Pockets has connected with reputable hard money lenders and the community is quick to point out if some lender was not right. Check under Network in the Bigger Pockets Tool Bar and choose a hard money lender to work with.

Good Luck