Hard Money Lending for Flips

[Connor Lewis]

Hello BP! 

I have a goal to complete my first flip this year. I don’t have all cash in hand, so I’m looking for a hard money lender. Does anyone in the Kentucky area have any recommendations for hard money lenders that they’ve worked with? I could go online and find someone, but I prefer to rely on referrals first.

Following that question, for those who have done flips with hard money, what should I be aware of? I understand the basic premise, but is there any advice you’d give to someone starting out? I appreciate any and all responses. Thank you! 

[Carlos Ptriawan]

Quote from @Connor Lewis:

Hello BP! 

I have a goal to complete my first flip this year. I don’t have all cash in hand, so I’m looking for a hard money lender. Does anyone in the Kentucky area have any recommendations for hard money lenders that they’ve worked with? I could go online and find someone, but I prefer to rely on referrals first.

Following that question, for those who have done flips with hard money, what should I be aware of? I understand the basic premise, but is there any advice you’d give to someone starting out? I appreciate any and all responses. Thank you! 

 This is my way of thinking :
1. Do you have your own OO primary now ? If not, do live in flip and sell after two years.
2. If this is for flip, do you know if you going to flip habitable house ? If yes, just use conventional financing, still way better than HML
3. if you really really really have to use DSCR lender, contact DSCR lender that has office locally
4. if you cant find local HML then contact large HML that has license to work in your state, and able to "close".

But first of all, make sure you have the money for rehab in case something goes wrong. 

5. Do very analytical on the market where you are going to flip , not too much on the house itself.