Would hard money fund my deal

[Ralphy Rosado]

Hello I have a question . I have a property on contract in brooklyn ny property after rehab is worth 1,300,000 this is my first time buying a property in brooklyn and I don't have money buy. Im thinking about useing hard money but I'm not sure if hard money will want me to put money up front. I have property on contract for 500,000 needs about 150,000 in renovation . Will hard money fund my deal with no money of mine up front

[Christopher Brainard]

@Ralphy Rosado

It is unlikely that you will find a lender willing to put up that much capital unless you have skin in the game and reasonable experience. Your best bet is probably to talk with friends and family and see if you know someone who can lend you the cash.

-Christopher

[Ralphy Rosado]

Originally posted by @Warren Ifergane:

Hard money, which I specialize in, will require some money upfront. Happy to look at the deal. My application is 1-min long at iferganeconsulting.com. I have the most competitive terms, and this way you'll get an idea on money down. It's preliminary, of course. 

 hello there and sure the property is 1415 greene ave brooklyn ny. can you tell me what i would need to put down as a down payment

[Ralphy Rosado]

i'm also looking to buy my home in Florida. I've notice you are out there in Florida. Im assuming you lend out in Florida as well. Is there a minimum and max. Also do you guys have lender long term low rate for rental. I also buy rental at 15,000 and put 5000 and rent out for 900 to 1300 a month I'm looking for lending on that as well

[Lip Weiss]

Hmm...  look like a great deal 

Any deal like that for sale ?

[Ralphy Rosado]

ok thank u Warren I will fill out now

[Charlie Fitzgerald]

No credible HML will lend you 100% for your deals. Do your due diligence on anyone purporting to be a lender on here. Many are not.

[Ralphy Rosado]

thank you . Are you also a lender and if so what are your requirements

[Jay Hinrichs]

Ralphy  its against the rules to solict business on the open forum side of BP you need to move over to market place... 

you can tell a legit lender  like Charlie when you see his license numbers and NMLS license etc.

there are a lot of totally scammers on BP looking to get small up front money and never delivering.

however to answer your questions 100% financing is rare.... Do hard money in utah is purported to do this.. but they want 2500 up front with no guarantee of funding.... but I have heard they do fund deals.. but I have also heard many pay the money and never get a deal that works and just lose the money...   Also Gorrilla in Eugene Oregon has rolled out a hybrid model that I think is only 10% down... tell them J sent you...

[George Despotopoulos]

@Ralphy Rosado I agree with @Christopher Brainard. Charlie and Jay also make very good points. 100% financing is extremely rare and even when offered it can be a risk on your end. 

[George Krajacic]

Hi Ralphy,

I am a HML and I see that you got number of correct answers from other people and neither would I loan you the money. However it does not means that I would not create a partnership and do the deal with you if I was in NY.

If your assumptions are correct that ARV is $1,300,000 and it will take only $150,000 to fix it, then you have something of real value. You purchase price and fix-up cost are only 50% of ARV. That means that you could set a wholesale price at $800,000 or $850,000 and have flippers line up at your door to buy it. If you are new to flipping you could partner with a seasoned flipper learn the business and still make about $300,000.

Good luck,

George Krajacic

[Don Konipol]

My initial thoughts are......if poster is inexperienced in real estate investing, doesn't know the financial and lending landscape...................then does anyone really believe he has the ability, knowledge, or experience to properly analyze a million dollar plus real estate transaction?  My experience is that when an inexperienced person thinks he has found the deal of the century, it is usually a deal with warts all over it that has been shopped to every known buyer all over the world!

$1.3M value property needing $150K repair is not going to be sold for $500K unless there is a VERY unusual circumstance; and then it will be sold to someone with the cash to close immediately.  Sorry, but with the amount of information available today; the amount of money chasing returns in a very low interest rate environment, and the liquidity for rel property when offered at a bargain price, this kind of deal just doesn't happen.

To have numbers like this in a buying opportunity either (1) the buyer needs to have some knowledge (such as a change in zoning; a huge development happening near by (think Orlando before Disney World was announced) that the seller doesn't have - and won't obtain before closing.  So this means nobody else has this knowledge - i they did they would offer a little more to the seller, and the price would be bid up, or (2) the buyer can in some way CHANGE the property to a higher and better use. Again, the chances of someone inexperienced, with no capital, having this unique knowledge is inconceivable, i.e., unless his father is the head of zoning!

[Ralphy Rosado]

thank you guys for the information. This is definitely good information. I've never done a wholesale I've always done single family rental but I'll definitely look into it. 

So for future reference - My understanding 100% financing is rare or could be scams and so can many hard money lenders. If I found a lender that would cover 90% LTV and I put 10% again for future reference. How does that work. Would I just make a check out to hard money of the 10% of would I just send that to my title company or Attorney towards the deal directly ???? Im a little confused how that works

[Chad Clanton]

Hiya @Account Closed, I see you've been pretty active lately, when you get a chance you should fill out your profile so people can get to know you better. 

[Tarik Turner]

how did this deal turn out for you?

[Stephanie Medellin]

@Ralphy Rosado  You probably already figured this out as this post is a bit old, but when investing a percentage of your own money into a transaction, that money always goes to the title company or attorney handling the closing, not to the lender.  In NY (or at least parts of NY) the real estate broker collects your earnest money deposit and holds in escrow, so that's OK too, but you don't send money to the lender.  The lender will be paid any fees owed to them at closing (with the exception of the appraisal, which is paid out of pocket).  

Think about it this way.  You're paying that money to buy the house, so eventually it has to go to the seller, less any closing costs.  If you're buying a property for $100,000, putting 10% down or $10,000, and borrowing $90,000, that equals $100,000.  That $100,000 goes to the seller.  It wouldn't make any sense to borrow $90,000 and give $10,000 to the lender.

[Ralphy Rosado]

Originally posted by @Stephanie Medellin:

@Ralphy Rosado  You probably already figured this out as this post is a bit old, but when investing a percentage of your own money into a transaction, that money always goes to the title company or attorney handling the closing, not to the lender.  In NY (or at least parts of NY) the real estate broker collects your earnest money deposit and holds in escrow, so that's OK too, but you don't send money to the lender.  The lender will be paid any fees owed to them at closing (with the exception of the appraisal, which is paid out of pocket).  

Think about it this way.  You're paying that money to buy the house, so eventually it has to go to the seller, less any closing costs.  If you're buying a property for $100,000, putting 10% down or $10,000, and borrowing $90,000, that equals $100,000.  That $100,000 goes to the seller.  It wouldn't make any sense to borrow $90,000 and give $10,000 to the lender.

 makes sense thank u

[Tom S.]

@Ralphy Rosado  What happened with this potential deal?