Hello all,
I am looking to do my first flip but would like your input on financing deal. I have an HELOC of 30k I will be using for repair/utils/fees/emergency repairs. My friend works for a mrtgage company and states that he can get me an conventional investment loan that works as a bridge loan with 100% financing. All hard money lenders I have spoken to require a 5k downpayment(put towards principal) plus points/closing fee(average about $4500 closing costs that include payment of points on 50k loan). I find the advantage with bridge loan is 100% financing with a lower interest rate, very little in closing cost and pre-payment penalty of only 1% of loan. Any recommendations from the financing guys here would be appreciated.
Thanks,
Matt