Very Large Rehab/only have earnest money

[Nikki Feliciano]

Hello,

I am an newer investor and I may have a rehab under contract as of tomorrow, but it is for a very large amount and all I have is the earnest money. The margins are not there for a wholesale but they are DEFINITELY there for the rehab, low ball estimate if held for 90 days profit is about 30k. So this is my problem, am I going to find an investor that will lend me (a newby) 444k to potentially make 20k. If not, what are the chances I can get a private lender to partner with me to maximize the profit to about 50-80k profit split 50/50 for 25-40k a piece? The money is there, why wouldn't they? Well, the only reason would be I'm a NEWBY, am I right or do I have a chance at this? All help is greatly appreciated!

[Darrell Shepherd]

Dude, I applaud your efforts, but that's not the kinda deal you want to cut your teeth on.

Make the phone calls, see if you can find the right guy to partner with or flip it to, but I don't know of anybody with that kinda cash that would hand it to a new investor on a loan. Not without real money in it yourself and massive reserves, anyway.

I've been liking the baby deals lately, the spreads don't suck. Bought one for $12k, putting $18k in and selling it for $60. That's pretty easy to put together, even if you're new. You may want to get your feet wet with that kinda stuff. I've done plenty of $500k deals, but they scare me and I know what I'm doing.

That thing sits for any length of time with a high rate loan and you're holding costs are going to be over $5k/mo. You really want to tackle that on your first one?