Do you need money for a flip project?  

It happens to all of us at some point.  You have an amazing flip deal that you can’t fund yourself, or you are just getting started and aren’t quite sure where to get begin.

Either way- you are in the right place! 

You are about to learn 5 Simple Steps on how to get money for a flip and discover the 1 thing most investors forget which kills their chances for getting funding …which we will go over at the end.

We’ve got an infographic version of this post as well as a text version. You can download a PDF version of the infographic here.

And keep scrolling down to get to the text version.

Let’s start with the infographic… (Click the image to enlarge or download the PDF version)

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Let’s dive right into the text version…

Step 1- Identify The Type Of Money You Want To Use

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The first step in our formula- is identifying the type of money you want to go after.

There are 5 different types of money you can get for your flip project:

  1. HARD MONEY
  2. PRIVATE MONEY
  3. CONSTRUCTION LOAN
  4. TRADITIONAL LOAN
  5. LINE OF CREDIT

Let’s take a second to dive into each one of these.

Hard Money- This is a loan that is placed against the VALUE of the property, NOT against the credit of the borrower.

This means that you can have no money in the bank… a credit score of 150 … and you can still get a hard money loan.  All you have to do is have a good deal.  The lender will look at your deal and if the numbers work they will give you the loan.

Private Money- This is money lent out by individuals or hedge funds for investments against the value of the property.

This also means that your credit score and financial history do NOT matter.  These investors will also be looking at the numbers and what kind of return they will get on their investment.

Construction Loan- These are the funds lent out only for the purpose of construction costs.

This is how you pay your contractors/materials/ permits etc….

Traditional Loan- This is a loan based on the creditworthiness of the borrower and asset

This loan WILL look at your credit score, your financials and even have an appriaser go look at the value of the property.  An issue you may run into is that the appraiser will base the loan off the current value of the property rather than the amount it will be worth after the repairs are complete.

Line of Credit- This is a credit line based on the creditworthiness of the borrower.

Sometimes collateral can be used like another property.

These are the 5 different types of funding available for a Real Estate deal. The first step is to pick which money you want to go after. 

The next step is answering the question of who can you get to lend you this money?

Step 2- Figure Out Who Can Lend You The Money

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Step 2 is identifying who can lend you the money you choose to go after.

Each type of loan is received from a different type of lender.

The following list is who you can get each loan from:

Hard Money- Small local companies and corporations will offer these loans.

These small local companies and corporations will have a set system they use to analyze a deal and decide if they will lend you the money or not.

Private Money- Generally these are individuals who lend out on projects, and can even be family and friends.

Set an interest rate and give your private money investors a return on their money for their funds.

Construction Loan- Small local companies and corporations will also offer these loans.

These small local companies and corporations will have a set system they use to analyze a deal and decide if they will lend you the money or not.

Traditional Loan- Local banks and credit unions will provide these types of loans.

These companies will take a look at your financial history, credit score, and the RE deal to decide if they will lend you the money.

Line Of Credit-  Local banks and credit unions will provide these types of loans.

These companies will take a look at your financial history, and credit score to decide if they will lend you the money.

CLICK HERE TO TAKE A QUICK QUIZ TO FIND OUT HOW MUCH YOU  KNOW ABOUT FLIPPING…NO ONE GETS #9 RIGHT!

Once you decide what type of money you want to go after and figure out who you want to approach for the loan you’ll need to find out where to find your lender of choice.

That’s where step 3 comes into play…

Step 3- Go Find Your Lender

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Step 3 is learning where to find your lender of choice. 

After-all picking what type of loan you want to go after and identifying who has it doesn’t matter unless you know where to find these lenders. 

The following list is where you will find each type of lender you decide to look for:

Hard Money- To find this money you will need to network and build relationships with local lenders and Real Estate Investors at events and have follow-up meetings.

It’s recommended you meet these people in person to build a long-term relationship. Check out meetup.com for local events in your area. You can also use google to find local lenders/investors in your area.

Private Money- To find this money you will need to network and build relationships with local lenders and Real Estate Investors at events and have follow-up meetings.

You may already have friends/family who are interested in putting their money to work.  After all a 10-12% return on their money is better than it sitting in the bank at less than 1%.

Construction Loan- To find this money you will need to network and build relationships with local lenders and Real Estate Investors at events and have follow-up meetings.

It’s recommended you meet these people in person to build along-termm relationship. Check out meetup.com for local events in your area. You can also use google to find local lenders/investors in your area.

Traditional-  Talk to your banker or get your first banker.  Find out their requirements.

Places like Chase, Wells Fargo, and Bank of America come to mind. 

Line Of Credit- Talk to your banker or get your first banker.  Find out their requirements.

Places like Chase, Wells Fargo, and Bank of America come to mind. 

These are where you will find each of these lenders.

Once you decide where you are going to go you need to learn how to approach these lenders to get your money.

That’s what you’ll learn in step 4…

Step 4- Discuss Your Flip With The Lender Like A Lender

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Step 4 is learning how to professionally present your deal and yourself to each of these different types of lenders.

You want to present your flip in the same way that the lender looks at your deal. 

This will make you stand out from other investors because most investors skip this step. 

Let’s go through on what to do with each type of lender:

Hard Money- To sell this type of investor on your property you will need to learn how to present yourself and your property in a way that impresses the investor, and shows that the property is a great investment.

This can include a powerpoint presentation, and will require you to know how lenders analyze properties.

To learn how to do this from start to finish you can get our “sell yourself webinar and template HERE and also get our deal analyzer HERE

Private Money-To sell this type of investor on your property you will need to learn how to present yourself and your property in a way that impresses the investor, and shows that the property is a great investment.

This can include a powerpoint presentation, and will require you to know how lenders analyze properties.

To learn how to do this from start to finish you can get our “sell yourself webinar and template HERE” and also get our deal analyzer HERE

Construction Loan-To sell this type of investor on your property you will need to learn how to present yourself and your property in a way that impresses the investor, and shows that the property is a great investment.

This can include a powerpoint presentation, and will require you to know how lenders analyze properties.

To learn how to do this from start to finish you can get our “sell yourself webinar and template HERE” and also get our deal analyzer HERE

Traditional Loan-  For this type of investor you will need to organize your financial documents and arrange an appointmnet with your local bank or credit union to get pre-qualified.

Your banker will then walk you through each step.

Line Of Credit- For this type of investor you will need to organize your financial documents and arrange an appointmnet with your local bank or credit union to get pre-qualified.

Your banker will then walk you through each step.

[NOTE:] Step 4 is the step most investors forget- they don’t learn how to professionally present the property to each investor. 

To do this you’ll need to know how to analyze a deal, and you need to know how to present your deal to the investor in a way where they are begging to give you money. 

Learn how to do that HERE

[CLICK HERE TO LEARN HOW TO USE THE DEAL ANALYZER]

[CLICK HERE TO LEARN HOW TO SELL YOURSELF]

Now you may be asking yourself…

“What’s next”?

After you learn the first 4 steps to getting money for your flip (mainly step 4) you’ll need to move onto Step 5…

Step 5- Repeat/Get Started

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The last step in our formula is deciding when to get started.

Once you learn how to use THIS and THIS … you can start going after money immediately and you never stop. 

You need to be constantly meeting lenders/networking, checking on rates, shopping lenders and building relationships with people in your industry.

This will also help you bring in more deals by working and talking with tons of people in your industry. 

After diving into…

{How To Sell Yourself}

{How To Use The Deal Analyzer }

…all of this will come naturally. 

Get started right now and good luck out there! 

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(NOTE: BTG members are provided funds for deals)