Hard Money Lender for New Deal

[Romy Gibson]

What’s up BP, I’m looking for a hard money lender. I have a property in my home town that is almost owned outright with less than $10,000 owed on mortgage. My stepdad has owned this house for about 15 years and has never done anything with it. I talked to him and he told me I can do whatever I want with it, so now I’m looking for rehab money. It’s a 4 bedroom 2 bathroom house in a good neighborhood. We plan on keeping it for a rental once we finish the renovations. Any information about or connection to lenders would be greatly appreciated. Thanks!

[Scott W.]

@Dave Spooner makes a good point and your stepdad will probably need to be the one that gets the hard money or HELOC on the property if he is not selling to you. It also might be a good idea to setup an LLC that a hard money lender can lend to so you can clearly distinguish the property that you guys are partnering in with. Finding a lender is a little crazy so look for a private money broker and/or other sources of money.

One key point is that you and your stepdad should clearly define who is doing what and what are the expectations from both sides. Creating the LLC usually "requires" you to figure this out and this would be a great time to make sure you both are on the same page. Will it be a long-term rental or will you sell once you have enough appreciation. What happens in the event that one of you passes or is disabled. Will your spouse or next of kin be a part of the partnership? Don't get too wrapped up to not do the deal, but definitely make sure to take the time to figure out the end game.

In my business when I’m connecting money with investors I’m always asking myself and the investor what is the end game.  “Begin with the end in mind”  

Good luck!