My First HM Loan... Maybe

[Zac Chism]

Hi All! I am a newish newbie in real estate investing. My first project was simply renting our townhouse while our house was being built but that's not what I'm here to discuss!

My second deal was buying the remaining lots (8) in my 11 lot subdivision that went bankrupt. That was 3 years ago and the market has changed. I have been seeking Hard Money but wanted to see if anyone here had thoughts. The Hard Money isn't going great.  I cannot find someone to commit to all 8 lots.  I won't get too deep in the details but I had an appraisal done on the land with a proposed house on it and it came back pretty good. I have a great contractor and my cost is 300K per lot and after build value is 460K. With 8 that is a decent payoff.

Now.... money. Assuming I get approval from the Hard Money guys I am happy with the terms. I want to avoid personal guarantees and limit my cash outlay as MUCH as possible. Do any of you wise individuals have thoughts about my situation or recommend HMLs to talk to?

[Frank Y.]

What prevents you willing do personal guarantee if you believe the deal is so good? Most lenders are reluctant to lend money if the borrower does not want do personal guarantee. If you don’t have confidence on this deal, why shall the lender? Thanks.