DMV - Hard money lender vetting/recommendations

[Ryan Mortimer]

Ok so hello everyone... my name is Ryan, its my first time posting and I am fairly new to game of real estate. Im located in the DC, Maryland, Virginia (DMV) area and I just pocketed a good chunk of money from my first build and sale and already have my next target picked. The next build is at a whole other price point. Acquisition ~$725k, build out ~$325K over 7-8 months and resale at $1.6M. Its my second build at this scope but its exactly the same scope and complexity as what i just finished....just in a much nicer neighborhood so resale is much higher. Now the profit from my last place won't cover these types of numbers so im looking for help vetting and/or finding a good hard money lender.

I recently got to know another local flipper and he informed me of a private lender he works with that covers 100% of the acquistion cost and charges 1.5 points and 13.5% (no rehab cost covered). The catch... apparently he is pretty squirrely and hesitant with lending to new guys (understandable) so he requires the veteran (the flipper i recently met) to co-sign. This makes me nervous. Does he now own half the property or is he entitled tonhalf the profit? Id assume he now takes on risk himself since he cosign with me. Am i being overly anxious or parnoid here? What can go wrong? (I admittedly dont fully comprehend the implications of him cosigning) He assured me that he would not be involved and that the .5 point goes directly to him as a finders fee. After three properties done with him it goes to 1 point and 12% and no cosign. Soo my question...to good to be true? Run for hills? Or completely reasonable?

Additionally, does anyone have any good recommendations for hard money lenders im the DC, Maryland, Virginia area that they have experience with?

-Ryan

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