Houston Rehab Contractors Who Partner w/ Own Private Funding???

[Cheri Lange]

Applying Bigger Pockets' "creative financing" thinking, can anyone recommend a Houston-based contractor who offers private funding for both purchase and remodel of an investment property?   A contractor who is willing to put skin in the game, helping ensure 1) investment property will pass all inspections, 2) perform quality work on remodel, and 3) complete job with reasonable turnaround time?

[Cheri Lange]

@Mike Reynolds,

Thanks for your reply.  Your question is valid and you're likely not the only one who may need clarification, so I appreciate you asking.  

Many private money lenders work full-time jobs and don't have time to find real estate deals. Regardless of whether retired or employed, PMLs look for alternative investment opportunities with hopes of earning a higher ROI. PMLs can be anyone, including contractors, who simply don't have time to find investment properties meeting the 70% rule. In my case, I have an investment property I want to purchase, but I don't have sufficient interest reserves for a hard money loan.

Two exit strategies: 1) fix and flip with an approximate $400,000 ARV, or 2) buy and hold, but keep the ARV low (because many homes in the neighborhood are being torn down and sold for lot value). I'm hoping to find a contractor who has cash to help fund the deal. And, by also serving as the contractor, would have a vested interest in flipping the property quickly to maximize both our ROIs.   Contractor could have first or second lien position, depending on what we both bring to the negotiation table.  Additionally, there's a lot of work that needs to be done to prep for rehab that would be more cost effective if done by someone else -- in this case, me. 

I hope this helps clarify.  If anyone sees problems with my strategy, any input is welcomed.