Hard Money Lenders - Fully funded projects
My family and I are newer to investing in real estate. My mother and I are both realtors in different states. We currently own three rental properties and have done 3 flips in the last two years. We want to explore the option of using hard money for our upcoming flip projects. From what I understand most hard money lenders want 25% down. That is possible for us but I wanted to reach out to see if there are any hard money lenders who are willing to fund the full project and rehab with a greater return on the back end. Does this exist or is this just a pipe dream? Any help/referrals/insight is appreciated! Thank you!
Most Popular Reply
There are definitely lenders (hard money and private money) that will do 100% financing, and even more that will do deals at only 10% down. All of the numbers just have to make sense. They typically want you to stay at 70-75% of ARV for 10% down and 65-70% of ARV for 100% financing. This way if something does go wrong and they (or you) have to get rid of the property quickly that there is enough of a margin to accept an offer at less then the original estimated ARV.
If you have any additional questions I would be more than happy to answer them for you.