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Hard money lenders for beginners: your first flip
You can finance your first flip with hard money. Lenders look at the deal first. Here is how to bring them one that works.
Get my termsHouston hard money lenderCan a beginner get a hard money loan?
Yes. Hard money lenders size loans mainly on the property and the deal, so first-time flippers can qualify when the numbers work: the purchase price plus rehab should sit well below the after-repair value. Some lenders charge beginners more or fund less. Our form asks how many flips you have done; send your deal either way and a loan officer confirms your terms.
See your terms in seconds
Your loan amount shows as you type. Send the deal and a loan officer follows up.
Estimate only. Loan amount is the lower of 100% of purchase plus rehab or 70% of the sale price when finished (after-repair value). Minimum loan $150,000. Business-purpose loans on investment property.
What lenders look for in a first flip
- A wide margin: purchase plus rehab at or below 70% of ARV
- A real rehab budget: contractor bids, not guesses
- A good contractor: licensed, insured, with references
- Cash reserves for closing costs, interest and surprises
- An LLC to hold the property
Sizing your first deal
| First flip example | Amount |
|---|---|
| Purchase price | $180,000 |
| Rehab budget | $60,000 |
| Total cost | $240,000 |
| After-repair value | $360,000 |
| 70% of ARV | $252,000 |
| Loan (100% of cost) | $240,000 |
Run your deal through the 70% rule calculator before you make an offer.
First-flip mistakes to avoid
- Paying too much because the house looks easy
- Underestimating the rehab; add a contingency
- Over-improving for the neighborhood
- Forgetting holding costs: interest, taxes, insurance and utilities
- Pricing the sale above recent comparable sales
Questions investors ask
Straight answers about hard money lenders for beginners.
Can I get a hard money loan with no experience?
Many hard money lenders work with beginners when the deal is strong. Send your deal and we will confirm your terms.
How much do I need to bring on my first flip?
With us, nothing toward purchase and rehab when the deal fits 100% of cost up to 70% of ARV. You still pay closing costs.
What is the 70% rule?
A rule of thumb that purchase plus rehab should be no more than 70% of the after-repair value.
Do I need an LLC?
Most investors borrow through an LLC, and lenders usually prefer it.
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