Please upgrade your web browser

These pages are built with modern web browsers in mind, and are not optimized for Internet Explorer 8 or below. Please try using another web browser, such as Internet Explorer 9, Internet Explorer 10, Internet Explorer 11, Google Chrome, Mozilla Firefox, or Apple Safari.

Funding real estate investing


Daryl Cabral Colorado Springs, CO

I work for a general contractor and am in the process of going out on my own. I was wondering if anyone has any creative ideas on how to fund a house flipping venture. I could do the work with my people I'm just not financially there. My credit is great and VA loan does little good in ways of finding a fixer upper. Thank you

28 November 2017 5 replies Small Business



Elliot Young Brooklyn, NY

HML Hard money lenders but overall to get the best deals buy some stock in the bank you want to get the REO"s from. Make sure your business card has the logo of the bank on the card and says "stockholder" under it. List your company as an REO Liquidator and ask for the lists that have the most equity and are the ugliest in the best neighborhoods. Now you should know where the best zip codes are ahead of time but that's the best way to what the list. Also the UCC process to secure them. Look at my last couple of answers I have some advice I know you might be interested in. Someone asked about house flipping and I just answered it. Good info there. Good luck. If you need a mobile app built for your business let me know we have veteran discounts. Better way for people to send you properties to flip.

Elliot Young


Eddie Starr Spokane, WA

Since you mentioned flipping, and not wholesaling, then the most obvious would be Hard Money. Beware that it's called hard, because the money you usually have to pay up front (points), and especially the interest, are higher than bank loans: anywhere from 10 - 20%.

If there's a local REIA or event, these would also be a good place to start, as there may be Private Lenders. BEWARE: companies and others may claim to be private, but if the require money up front, and their interest goes much more above 10%, they're Hard. Private are individuals, especially self-directed IRAs.

Finally, is a great forum.


Kimberly Smith Chicago, IL

Got a private message from Jay Pesci - JAY - in case you see this - your profile is opted out for private messages so I can not reply to you, thought I would post the answer here since it may help Daryl also. If you want to turn off your opt out to private messages we can chat.

The question was about HOW to get the right financing. There are lots of options and it is always changing so if you get a "no" one day, you can try again in a few months because new programs are always being created to stimulate the market. Of course as a current or retired military vet, you have the added benefit of looking at VA loans which can be more flexible than traditional. You can often get a better rate and lower down payment if the residence can in any way be considered your primary/owner occupied which can be finagled at the time of purchase depending on your situation. Depending on the condition of the property, you may also qualify for a 203K. Freddie Mac also has specialized programs for "flippers" or those wanting to buy properties as investment income. It helps to find an independent mortgage broker that does not work for one specific bank like Chase, then they can broker your situation out to other companies to find you the best deal. They dont get paid unless they find a fit so they work a lot harder and know the most options across the marketplace. Wintrust does a nice job. Avoid places like Lending Tree - they may be easier to borrow from but they are never the best offer in town. Sometimes your own community bank that knows you can even do a better job as they take more risks within the community they serve. Hope that helps!


Kimberly Smith Chicago, IL

Thank you for your service! I started doing the same thing as a second job about 10 years ago with my real-estate broker boyfriend. For many properties at the start we were able to get a basic mortgage loan with 5% down. Sometimes its 20%, just depends but worth looking into. You will have to pay the interest while you hold the property so the holding costs are a little higher but it allows you to build your base and eventually you can get your properties in cash. That is the ideal way because you will have more pull at the offer stage to get the property when it is a cash offer and sometimes you dont even have to be the highest offer when you are the most competent offer. My personal experience would advise against getting involved with other people or investors as that starts to get very sticky in the way you handle the money and contract as well as promise of profit sharing. You will need a good lawyer for that. Its much cleaner when you do it yourself and try to get funding that way. Could be a traditional mortgage or could also be in the form of a small business loan if you create your own business and incorporate or at least create an LLC. Hope that helps! Good Luck!


Phil Marcoux Mountain View, CA

Your best path is to find a financial partner. The partner provides money in exchange for equity and you provide sweat (labor).

Your general contractor bosses may even be candidates.

You can also approach the local and more successful real estate agents as they are frequently doing this but are frequently looking for quality contractors to form partnerships.

Be sure to secure the appropriate licenses and bonds required in the area you’ll work.

Your Answer

Please log in to answer this question.

Sign Up

You can join as either a Veteran or an Advisor.

An Advisor already has a career, with or without military experience, and is willing to engage with and help veterans.
Sign Up as an Advisor.

A Veteran has military experience and is seeking a new career, or assistance with life after service.
Sign Up as a Veteran.