HML Lending Options

[Alfredo Alfaro]

Hello, 

I was wondering if anyone has ever structured a HML where you could get 100% of the purchase price and you would fund the whole rehab?

Is this something a HML might consider? Or no?

I am not saying that they wouldn't charge the points or interest that's still a given but as far as the rest if this is a possible structure. 

Thank you. 

[Jeff S.]

Quote from @Erik Estrada:

Quote from @Jeff S.:

We’ve been lending 100% of the purchase price on flips for years, @Alfredo Alfaro. Only to experienced rehabbers in Southern CA though, so this is not a solicitation. I know we're not alone.

As you can probably see, Private/Hard Money lenders are as different as fingerprints. You really have to ask around. Locally real estate clubs are your safest bet. Here’s a Meetup link to many in your area: Real Estate Events Near Atlanta, GA

 Would you guys lend 100% to someone who doesn't own any properties but has a Real Estate License? 

We only lend to experienced flippers in Los Angeles and North Orange County, CA. Neither licensing nor the number of properties owned is relevant to us since these don’t demonstrate that the borrower knows how to flip a house profitably and pay us back – our two main criteria.

To horrify the other lenders here, we also allow our borrowers to defer all points and payments until the property sells. Not particularly unique, but go ahead and let me have it. 🥴

I think these illustrate the freedoms that some lenders have when they lend their own money. I encourage all borrowers to always ask a prospective lender where they get their money. This shouldn’t offend anyone. The more beholden a lender is to perhaps their individual investors, mortgage pool/fund participants, white paper provider, or even their lenders, the more their hands will be tied.