All Forum Posts by: Annie Schrock

Hi Randy,

All the advice has been great so far! Another step you could take would be to get connected to a good, relational hard money lender. Find a company that wants to take the journey with you and understands your passion and growth plans. Get pre-approved through them and then start sending them deals! Lenders only win when you win, so find someone who will be honest about if a deal is good or not. Then start flipping and grow with that lender! Having a good financial partner can accelerate your flipping business! 

Hi Denny, if you work with a hard money lender, they will also validate your ARV. They want to know it will sell for what you think it will before you get into the deal. They'll also be a second pair of eyes on your construction costs. If you pick a good lender, they will have done a lot of deals and be able to have a rough sense if your construction costs are on par for the project.

Every deal I've seen go bad is because of a bad contractor. Do your due diligence on the contractor before you use them! Under bidding, poor quality, not following timelines - those will all kill your project. Pick a good contractor and then manage them well! It makes all the difference!  

Hi Deborah, I agree that they can add up quickly! If you do find a hard money lender that will lend 100% of purchase + rehab, make sure you buy right. There are lots of deals out there and I've seen people make a lot of money even when they borrow 100%. It's all in buying right! Alternatively, get creative with finding the cash. Friends, family, or you might be able to access funds via a HELOC, cash value from a life insurance policy, take a loan out on your car, etc.

Hi @Edward Suess-Hassman Another option not mentioned yet is do a flip and hold. Find a hard money lender in your area that will lend you 100% of purchase + construction. If you find the right deal, you can flip it, rent it out, and refinance it and use the equity you've built for the downpayment. It's essentially the brrrr strategy but you can use hard money on the front end to get into the deal. I've seen it done many times in my area!