Quote from @Brandon Jensen:
Happy Friday everyone! :)
I am looking for any tips on how to go about getting the green light on getting funded for my first of many fix & flips, I started a LLC a few months back and my credit score is pretty low as I've broke both my legs over a period of time.(healed now) I have someone with a 620 (not the best) credit score willing to help me get into a business loan to try and get around 50k funded so I can use a DSCR loan to get started as id need 20% down. So I was thinking if I could get a small business loan to get my 20% covered and then get into a DSCR loan and be off to the races. Any input, ideas or suggestions on how to get going? Im damned and determined to get going asap and am doing what I need to, to get my credit back up so this is all easier for future flips!
Truly thankful for this group of extremely helpful minds!
Hi Brandon, congratulations on making the decision. Now, comes the hard part. As a couple of others have already said, a DSCR loan is for turnkey properties and is also (typically) a 30-year fixed rate loan, similar to what you would get for your primary home.
I think a short-term fix-and-flip loan would serve you better because, first, the credit requirements are typically lower than a DSCR loan's credit requirements, and fix-and-flip loans will fund a portion of the purchase price as well as some or all of the rehab costs (usually through the draw process).
Right now, saving your cash, rebuilding your credit, and finding both a partner (ideally with a higher credit score AND experience) and lender you're comfortable with should be your priorities. Feel free to let me know if I can answer any other questions. Thank you and good luck!
