Issues with PML

[William Baumann]

I seem to be having an issue I am not sure how to solve or if I just need to suck it up.  Basically I have 2 PML for fix/flip that agree to lend 100% up to $100k  for a 60/40 split.  (they get 60%) which I am grateful for as I am new with no track record, but have yet to find a deal that will fit their profile. 

My issue is that their "Deal" requirements are so out of line with the current market that unless I get extremely lucky, I don't think I will ever find a property that will meet their requirements. There requirements are nearly 30% of ARV regardless of the property type, (foreclosure, fsbo, hud, etc.). That is just not realistic IMO. I have tried talking to them about increasing their risk profile to allow up to 65% ARV but they say they would rather not do a deal than have the higher risk.

Now it makes no difference to them as they invest with other investors across the country, it is just kicking my butt. As a "starving" investor, I don't have the reserve funds for HML's.

Should I continue to try working with these PML's or do I need to just change gears and look at wholesaling, or something?  I really need to get a deal going as I only have about 2 months of reserves left before I am going to have to take another full time job and only do investing part time.  I am getting frustrated and my wife is getting discouraged that investing is something that I can/should do.

[Ned Carey]

Are they saying 30% of ARV minus repairs or just 30% of ARV?

I have done a lot of deals at 30% of ARV. For properties that need heavy repairs this should not be that hard. On the other hand 65% of ARV without taking into account repairs needed is extremely high risk I I wouldn't consider it even if someone would give me 100% financing.

Even if you get a rehab deal, the payday will not come in the next 60 days and your reserves are gone.I am not sure your plan to move forward is one that is likely to work. It can take 6 months or more to get your 1st deal. If you are doing rehabs then it can be another 6 months before it resells and closes. Wholesale can be an option but finding deal that good is not easy and takes time to develop that skill 

This business can be done part time and if you need the money now that may be your best route to start.