Is is possible to find a hard money lender that will finance a project 100% which would include the asking price and cost to fix property? I am a beginner and would like to get into flipping properties, I have no collateral or good credit.
Good credit is an issue first. We can worry about no collateral later. Yes, 100% purchase price… rehab loan 65% to 75 % after ARV( after repair value.
Agree with John. Credit score is important.
for 100% financing, the minimum is 600.
There are lenders that will work with you regardless of your credit. A report is pulled but the review is primarily to make sure there are no federal tax liens.
These are short term loans so you would need to fix and sell within 6 months. With bad credit it would not be likely you would be able to refinance these and keep for rentals.
The loan works similar to that mentioned before. Lender will fund 70% of the after repaired value. That 70% has to be enough to cover the costs, payments, fix up $, and purchase price. If the #s all worked out then that could be 100% for you.