Question about financing and money down.

I am getting ready to get into my second investment property with about 10K in cash at my disposal. My first property was an affordable mobile home that I paid for out of pocket and flipped for a good profit, I now want to get into my first house to rehab and flip. My question is what is the best mode of finance for a home costing roughly 40K with zero or little down as I want to save my 10K for rehab costs. I have good credit and a full time job with little expenses. Due to a recent relocation I have only 9 months work history with my current employer but my job before that was a 5 year history and 6 years the for the one prior that. Any information would be greatly appreciated.

In your situation, I would get a hard money loan for the purchase price of the property and keep your cash for the rehab.
Also make sure that the rehab is considerably less than $10k (I assume you are going to do the work yourself,) because there are always unforseen problems in a rehab and it is easy to go over budget.
Therefore I suggest you find a home with light rehab or cosmetic work that need to be done, use a hard money lender for the purchase and do most of the work yourself.
Build up a good cash reserve before becoming more adventurous and getting into bigger rehabs and costs. :biggrin

I planned on about 6-7K for the rehab, some cosmetic and a little HVAC. I was curious what was a good place to start looking for a hard cash lender and what are some good traits a lender should have?

Personally I’d go with a private lender. just think of all the people out there getting 2% or less on a CD. I find them on my Public Records sites. Note: not all provde this information. You’ll need a method to contact there people and be SEC compliant.

Anyone know of any good articles on locating public lenders? Never triend that avenue of financial ivenstment before. Anyone have any practices that they have found work well?

Nothing beats just asking people. “Do you have an IRA or other investment capital not getting a high rate of return safely?” or something similar.

Private money is just as the name implies. It is a private agreement between you and a person with money. You take a loan from the individual or group of individuals to do your project. I would also borrow the money to fix it up. Don’t use the $10k you have for that. You will need to draw up a loan agreement just like at a bank. This is not a kitchen table transaction. I talk about going to the local real estate investment club and this is the kind of thing you get from them. It is not the presentations from loan brokers and property managers that is most useful at these meetings. It is the people associated with the club are industry professionals. Our loan brokers are not like the loan brokers on TV, our lawyers are not like the lawyers on tv, our insurance brokers are not like the insurance guy down the street. This is where you will meet professionals that know our industry locally. I would contact a lawyer from the club. He does real estate deals. He will probably have drawn up an agreement like that and also will know who the parties were and the party with the money that you can contact.