Hard or Private Money Lender for Land Flips

Hard or Private Money Lender for Land Flips

Member since 2024 · 2 posts · 3 votes

Hello BP!

As a new real estate investor, I have been exploring each strategy real estate has to offer. The first thing that I explored was doing the BRRRR strategy. However, I didn't continue this since I couldn't find any deals that would allow me to do a full cash-out refinance. Now, I'm diving into the niche of land investing.

When I was pursuing the BRRRR strategy, one of the aspects that made scaling seem feasible was the availability of hard or private money lenders. In fact, during my short stint as an aspiring BRRRR investor, I successfully secured a pre-approval for a private money loan based on my net worth.

Now that I’ve shifted to land investing, I’m wondering: Do private or hard money lenders exist specifically for land flips? I’m curious about how financing works in this space, especially since land investments have unique challenges and opportunities compared to traditional property flips. Are there lenders who truly understand the nuances of land deals? Or is it more common for land investors to self-fund and scale gradually?

Thank you in advance for any advice, stories, or pointers you can share! I appreciate this community and look forward to learning from all of you.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y

    @Francisco Avancena

    There are specific lenders who will do land deals

    But of course not as many as traditional real estate.

    The key will be skin in the game - typically for land because it is less liquid than a home the lender will want to have a lower ltv on the deal

    7e investments53 Reviews
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    1y
    Quote from @Chris Seveney:

    @Francisco Avancena

    There are specific lenders who will do land deals

    But of course not as many as traditional real estate.

    The key will be skin in the game - typically for land because it is less liquid than a home the lender will want to have a lower ltv on the deal


    I fund land flippers currently in  CO FLA WA ID MT NV AZ OR TX SC GA VA  one thing about land though LTV is lower and RATES are NOT the same as typical HML rates are higher for raw land but its a specialty niche and a business that I grew up in.. So there ya go one contact.
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