Last year, I jumped into my first fix and flip project—honestly, it was a bit of a rollercoaster. I thought I'd done enough homework, but when it came down to the actual loan process, I was kinda blindsided by how much cash they wanted upfront. I mean, I knew I'd need some skin in the game, but didn't expect it to be quite that steep. Ended up scrambling around last minute to pull together extra funds from savings and family (awkward convo with my brother-in-law, lol).
Now I'm eyeing another property and trying to avoid repeating that stressful scenario. I've heard different lenders have pretty different expectations about how much you gotta put down. Curious if anyone else has run into this issue—like, did you find certain lenders easier to work with or more flexible on the upfront cash? Or maybe there's some tricks or tips I'm missing here...
"Ended up scrambling around last minute to pull together extra funds from savings and family (awkward convo with my brother-in-law, lol)."
Haha, been there—family convos about money are always a bit cringe. Did you check if local credit unions have better terms? Sometimes they're surprisingly flexible on upfront cash requirements...
Did you check if local credit unions have better terms? Sometimes they're surprisingly flexible on upfront cash requirements...
Haha, totally relate to the awkward family money chat—been there myself. Credit unions can be a solid option, but also check out smaller community banks. They sometimes offer more flexible terms or lower upfront requirements than the big guys...worth a shot anyway.
Credit unions can be a solid option, but also check out smaller community banks. They sometimes offer more flexible terms or lower upfront requirements than the big guys...worth a shot anyway.
Credit unions and community banks can indeed offer decent terms, but I'd caution against assuming they're always more flexible. In my experience, smaller institutions sometimes have stricter underwriting criteria, especially if you're newer to flipping or your deal has complexities. Might also want to look into private money lenders or hard money options—they usually have higher rates, but they're often quicker and more willing to work around traditional cash-down requirements. Just something else to consider before you commit...
Yeah, smaller banks can be hit or miss. I remember talking to a local community bank thinking they'd be more flexible, but they actually wanted way more paperwork and were super cautious about the property's condition. Ended up going with a private lender—rates weren't ideal, but the upfront cash was manageable and the process was way quicker. Guess it depends on your specific deal and how much hassle you're willing to put up with...
