Updated almost 9 years ago on . Most recent reply
Private Money Lender
I have approx. 20% capital to purchase a $100,000 rental property in a desirable neighborhood, but I am in need of the other 80%. I am thinking about contacting a private money lender. Is this a good idea for a new real estate investor?
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#1 Medium-Term Rentals Contributor
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Hi James, You could use a private lender to fund the project. If you put the property in a LLC then you can use a commercial loan. They don't care that much about personal credit. Its all about the deal; cash flow, LTV. Typical loan is 75%, but I have been able to get 80%. Interest rate about 5% or so. I use this strategy all of the time. I generally am able to structure the deal where I have very little of my own money in the deal or I am able to refi it out.
Good Luck.