Financing First Deal-Private Money

[Aaron Osgood]

Hello all. I had a great meet-up last night with fellow BP'ers in the area and it seemed the consensus for a first flip is find something "easy". I think i have found one that has comps in the $200,000+ range and i can get for 140's. I'm trying to find ways to finance it unconventionally because I don't want to hold onto it for 6+ months. Here are some details.

Sales Price: let's say 145k

Closing Cost: 3,000 (i'm rolling in my 3% realtor commission to closing costs as well)

Renovation needed: 15k

RE Tax: 450/month

Insurance: 150/month guess

ARV: $205,000. A house 2 blocks away with same floorplan and sq footage sold at this price in 5 days.

Here is the tricky part. I have about 15k cash to play with. Would a private lender be willing to take that 15k as a down payment on a $145k loan? Is an interest only, 10%, loan appropriate? How else can i structure it to make it attractive?

I see monthly payments playing out this way.

Interest from loan: $1,450

Tax-$450

Insurance-$150

Utilities: $50

Total: $2,100 a month * 3 months to flip= 6600 carrying costs

So in the end:

$205,000 sales price

less commission: $12,300

less closing cost: $5,000

less seller assist: $3,000

Total: 184700

Profit: $1847,00-$169,600= $15,100

Obviously not a killer deal but something to get started and experience. The renovations include adding carpet and finishing a dry, w. sump pump basement.

Any advice here is tremendously appreciated.

Aaron