Transactional Money Lender

[Samantha Baker]

Hey everyone! I'm seeking a Transactional Money Lender to cover down payment, closing costs and renovations for a property I'd like to purchase. Amount would be $85,000. Here are some details:

Purchase price: $280,000

*Down payment 20%:  $56,000

*Closing costs (estimate): $10,000

*Renovations: $19,000

* = Transactional money lender needed for these items

I'll be using a DSCR loan with a 30 year fixed for this property.

I appreciate any referrals for for $85,000. Thanks in advance! 

[Alex Breshears]

Hi Samantha! I just wanted to offer some insight into what you are asking for, in the way to show I understand what you are asking for. You are obtaining a first position lien with this DSCR lender, but then wanting someone to come in with a second lien for not only the downpayment (so there is no equity buffer at all), and then renovation costs plus closing costs (so essentially the lender in second position is going to owe more on the property than it is currently worth at the time of closing). I only bring this up because I am giving you an idea of how a private lender sees the numbers in this deal. Think about if something happens to that first lien and it goes into default. The interest charges, legal fees, etc will very quickly eat away at any equity buffer there is in the property, so the second lien holder has a high chance of being TOTALLY wiped out. Honestly, this might be a great situation to look for a JV partner so that way they have some of the upside potential and a say in what happens with the day to day for the property to make sure renovations happen, the value keeps climbing so their capital isn't under water. Just my two cents! Good luck to you in finding something!