private lenders/hard money loans

[Garland Robinson]

I've never dealt with a private lender or hard money lender before. My question is, is it possible to obtain a private lender or hard money loan for the sole purpose of getting a deal to wholesale. Instead of trying to lock up the property under contract and assigning the deal over. Is it possible just to use the cash from a private or hard money lender to obtain the property and still wholesale it out? Still as a all cash deal? Granted there is points,interest,etc involved, but if its at a low enough price where everyone is satisfied would lenders loan cash for short, I guess very short term loans? Further more or is it possible to for the same scenario for a property that has tenants? And you use the monthly payments to pay on your loan until you wholesale the property. Again its just for a wholesale deal no rehab or nothing like that. Just looking for alternative ways to lock up deals. Thanks

[Darren Eady]

It's called transactional funding.  There are several lenders that specialize in this type of funding.  You buy the property with all of the lender's money (100% except for the earnest money it took you to tie up the deal) and then you sell the property to your cash buyer the next day for a profit.  You repay the transactional funder, plus a couple points, from your cash buyer's funds, and you make the majority of the profit.  The tough part is having a cash buyer ready to purchase from you a day or so after you buy the property.  If you can make that work, I've actually seen someone make $115k in one day that way.  Good luck!