Looking for Hard Money Lenders That Don't Require an Appraisal

[Derrick Reyes]

Hello! I'm a new investor getting started with BRRRR in the Detroit area. I thought I had found a couple lenders who would do fix and flip loans with new investors. However these lenders still require an appraisal, contractor estimates, etc. before closing. That means I can't use these loans to make cash offers which severely hamstrings my ability to make discounted offers. Is it possible for a new investor to get a hard money loan that doesn't require an appraisal? If so, any referrals are greatly appreciated. Thanks!

[Jay Hinrichs]

Quote from @Derrick Reyes:

I am finding that the answer to the question "Can I use HMLs to make a cash offer." is No. 

The answer seems to be that HMLs are in between conventional loans and all cash and should not be sold to sellers as a "cash offer". They have advantages such as quick closing and qualifying based on the property, but often still have contingencies in place. 

U can make a cash offer and simply have no contingencies for financing so you risk your EM if you dont close. But then a sophisticated seller is going to want proof of funds but most sellers are not that sophisticated.. other wise most wholesalers would never get deals.  Everyone of them says they are cash buyers when in fact very few really are.