First Fix & Flip - Two Financing Options

[Nicholas Smith]

Hello BP, 

I would appreciate any feedback or suggestions on the following scenario.  I'm under contract for my first fix and flip in East Chicago, IN.

Purchase Price:  $50,000

Rehab Costs: $30,000

ARV: $115,000

I have two financing options that I'm considering.

Option 1 - Hard Money

APR - 13.5%

Origination Fee - $3,000

Appraisal/ Inspection Fee - $350

Option 2 - Offer from family members (Aunt & Uncle)

Family members bring $40,000 to the table

I bring remaining $40,000 plus holding costs

Split sales proceeds on a 50/50 basis

Other pertinent details: I'm hoping to hold the property no more than 6 months. I am a licensed real estate broker so I'm representing myself in the purchase (estate sale on MLS). I will be listing the property once rehab is complete. And I will have to manage the project because my family member is not in the area.

Which option would you all suggest??  Any input would be greatly appreciated.

Thanks,

Nick

[Nicholas Smith]

@Luc Boiron and @Ronan M.

Thank you both for your feedback.  I have decided to go through with the hard money lender.  Project should be underway in early April.  So I'm definitely looking forward to it.  Again, thanks for your words of advice!