How to Get a Loan on a House Flip

in #youtube5 years ago

I flipped 26 houses last year and I am on pace to flip about that same amount this year. When flipping houses I tend to use some sort of financing on all them. People always ask me why I use financing when I could make so much more money using cash.

The answer is simple. I don't make more money with cash, because I would be flipping about 1/3 as many houses as I do now with loans. I make about $30,000 on each flip and the financing only costs me from $5,000 to $10,000 on each flip. The numbers say you make more money by using financing.

It is not easy to get financing on flips. Banks do not like to loan on flips unless they are local banks and the investor is very experienced. I have a great relationship with my bank, but they don't lend to everyone. Hard money is an option as well but can be very expensive and a pain to get. Private money is another option and one that I love to use, but private money is not easy to get. I just started using it a few years ago. Now I have at least 7 private money lenders that I use on a regular basis.

I go over how to get a loan on flips in this brand new article. https://investfourmore.com/2018/10/12/how-hard-is-it-t-on-a-house-flip/

I also did a video on the cost of my financing on flips:

Sort:  

Was it nerve raking when you first started out?
Now that your experienced and do a lot it doesn't really matter as much if 1 out of 30 flips goes bad but when you are new and your only flip goes bad it seems like that could put you out of business.

Yes, it is much different starting out. I was lucky my dad flipped and shared some of the risk with me when I started.

Coin Marketplace

STEEM 0.35
TRX 0.12
JST 0.040
BTC 70753.86
ETH 3589.34
USDT 1.00
SBD 4.75