hard money for rehab, best of the best

[Scott R.]

Ive been having some trouble finding a hard money loan to do a rehab. I understand about protecting their money and not sure if they are getting better and better or not but i thought it was alot easier to get one of these starting out?

Everything i run into is 10-20% down of the purchase price, or your own homes equity, or even equity split with 12% intrest but your collateral is your own home.

Anyone know of any companies out there that have a different approach? Like 3-4 point at the end of the loan and "x" intrest? I want to build relationships with people who have money and i will turn them into hard money lenders for me to save me a little money but i need to do a flip or 2 to show im credible. If they see my profits and i let them have 10% everytime i sell a home in 90 days thats going to be a good return for them.

Any advice in this area? I dont have a home with equity, not do i have cash sitting around for the down.

[Richard Warren]

Originally posted by Dwight Droze:

even arv 70% after repairs seems tough. thats like a home worth 153k with 20k in work means you have to get it at 87k for someone to give you a loan.

If your motivaton is to make money you better not pay more than $87k. Sounds to me like you have a case of gotta-do-a-deal-itis. Lenders have those guidelines because they know if they loan money on a losing deal they won't get paid.

:cool: