Can I use hard money to fund a wholesale deal?

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Be careful with new western, especially if you're not going to be there. They say/do anything to get a deal sold, do proper due diligence and know what you're buying. They don't represent you.

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Hey @Derek Nykamp! Coming in to echo most of what others have said. New Western can be great but definitely do your own due diligence on the deals and the market if you aren't familiar. As an agent here in Denver I have dealt with New western numerous times and A LOT of their deals are worthless. They lock up on market properties for above asking and then try and flip it as an off-market property. Just had this happen with a duplex, and it was back on the market in a couple of days. So either have a second party verify, or be sure you know your numbers.As for the hard money, of course, you can do this, but just factor it into your budget as with 10-13% interest your holding costs will increase pretty significantly. It's a cost a lot of new flippers don't think about, and it bites them, as they only go off of PP + Rehab is less than ARV and they think they have a profitable deal. But you need to factor in closing costs on both sides, holding costs, and any other soft costs.Lastly, I wouldn't push away from working here in Denver, since you have the skills to complete the rehab, you have a strong chance of partnering with someone that has the capital to complete the Flip, and you can do the rehab. It's a perfect partnership. I have completed a few of these with contractors, as we both bring benefits to the team.

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Yes - you can absolutely use hard money for deals that are secured through a wholesaler like New Western - I'd recommend asking your New Western agent if they have HM recommendations

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I came to echo what Robin said. New Western is great. I personally bought a deal through them in August of last year and used a hard money lender to fund part of the purchase.

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@Derek Nykamp also a New Western agent. Most of my investors use hard money, and many I've spoke to prefer it. Reach out to your agent there in OKC, or Denver, and they'll have a solid lender contact for you. If you're looking for affordable, try KC! We are not only affordable but looking at long term appreciation through the WHOLE city. @Eliott Elias I can't speak on which ever agent you worked with at the company, but here in KC, we are VERY strict about who we allow to lock up deals. We don't "say anything" to lock up a deal, as that would be unethical, and we could lose our license. We are all licensed and do everything according to the law. While it's true we don't offer representation, this is to benefit our buyers. We don't care if investors source properties outside of us, unlike typical retail agents. We want people to know they aren't locked into doing business with only us. We simply offer profitable deals. Some work for some people, some work for others. But we NEVER want you to get a deal that won't work for you. One, we don't want buyers who back out and two, we just want to see people do well. If you ever have any questions feel free to hit me up

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@Derek Nykamp shoot me a message and let’s chat OKC.

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@Steve VaughanHi Derek! I moved from San Diego to OKC recently and work on one of the largest mixed use commercial developments here. I would love to assist you in building out your residential portfolio if you’d like. I’m doing the same and have learned a lot in a short period. Shoot me a message and let’s chat.

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Completely disagree. I refuse to do business with them, and won't let them into my properties. Please do your DD on both NW companies!! NEVER RELY ON SOMEONE ELSE'S NUMBERS.

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@Derek Nykamp like others have mentioned in this thread, you can use hard money but it would be a very expensive option. Typically you will pay 3 points and 11-12% interest. Most hard money lenders will have a 3 month minimum earned policy. You will save a lot of money and time using Transactional Funding. Transactional Funding is 1% and you do not need appraisals, credit checks or inspections and very minimal paperwork. Happy to go into more detail about it if you want to reach out.

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Hi @Derek Nykamp Depending on your credit score, you may qualify for 10% down (up to 90% of the purchase price + 100% of the rehab costs). I'd ask every lender you are talking to what their policy is regarding assignment fees. Most lenders won't fund the entire fee, or they will fund a portion of it or all of it if the amount is under 10% of the purchase price. We utilize programs that fund 100% of it for our wholesale deals. I have worked with numerous NW branches over the years, just do your due diligence up front and be cautious. I can recite numerous horror stories and they have a well-known negative reputation with many major HM lenders. Take that for what you will.