GAP lender needed... Texas City

[Branden Jordan]

I have been under contract on a duplex ready to close, but the second investor has ghosted me and the lender. We need $30,000 to close. It will close in just a few days once we get an agreement notarized. We are willing to pay $5,000 up front upon entry of the deal. We also will pay 13% per annum paid monthly for the duration of the project. It is a very light cosmetic rehab, Just enough to get better rent rate. The project will only take a few weeks of rehab but will refinance at day 91. Federal guidelines do not allow loans like this to be refinanced sooner than 90 days I'm told. How would you try and find a gap lender? Facebook is full of scammers and a waste of time. This is a very legitimate deal and quick money for the gap lender. They will be second in line behind the first mortgage.

[Chris Seveney]

@Branden Jordan

Do you have title already done on this asset?

[Branden Jordan]

We have a title commitment for insurance.

[Andrew Postell]

@Branden Jordan it sounds like you are saying that you have a Hard Money Lender in first position and you need a partner for the downpayment...is that what I am reading here?

[Marty Johnston]

@Branden Jordan there are a number of ways to get this done in a weeks' time depending on your situation.

1. Another private investor, willing to bring equity in exchange for ____ (fill in your agreed upon terms). (3-15 days)

2. Unsecured debt, either to you personally, another partner to the project etc. - based on personal Income, Credit, DTI, etc (1-8 days)

3. Quick close leveraging a 1st lien against OTHER real estate you on either a cash out refinance, or, if you have equity, you could potentially obtain a 2nd lien against cash flowing real estate usually capped to a max 75% CLTV (1st + 2nd liens can't exceed 75% LTV combined) (5-30 days)

4. An advance against your cash flow from other existing real estate. Not a real estate loan meaning no appraisals, no liens against a property, does not show on personal credit, business credit, against any property, etc. You simply obtain funding based on your net cash flow after debt service and 'pledge' that cash flow for a period of time (up to 5 years, no pre-payment penalty), for a cash advance. Rates around 12-13% on average. No upfront fees, all costs paid from proceeds. (2-5 days).

5. 2nd lien against the subject property from an outside lender. << Most difficult to obtain IMO on smaller amounts. Others may have a different opinion, but outside of a seller carry back up to 90% CLTV (still require some skin in the game, unless you go true hard money) 2nd liens on real estate for purchase transactions in the manner you're seeking are very difficult to get a loan against, whether it be a secondary market lender (private equity fund, balance sheet lender, family office, etc), and usually are seeking larger transcations ($1-3MM +) in this space, and are still capped at a max 75-80% CLTV (still wanting skin in the game).

# 4 usually requires more explanation as its newer to the market (DM me if interested in discussing these options further), but all 1-4 appear to be potential options for you based on the limited details. 

Good luck!

[Branden Jordan]

Quote from @Andrew Postell:

@Branden Jordan it sounds like you are saying that you have a Hard Money Lender in first position and you need a partner for the downpayment...is that what I am reading here?

 I found funding for the 2nd lien position. You are right. I was looking for some money as a buffer. I had the down-payment covered. I just needed to get a headstart on closing-costs, and money for contractor before the first draw.

[Jillian S Young]

Hi how were you able to find the 2 nd lien lender ? I am looking