what type of LTV are most private guys looking for?

Question

I have seen some advertised in my area saying they only do 50% ltv. Is that common practice?

Kevin Yeats · Answer

A LOT depends on the quality of the deal.  The highest offered LTV that I have seen is 80% with 15/15 (or 15/30) with 3 years fixed.

Look for my message in the Marketplace section.

Chris Martin · Answer

@Mike Wallace that LTV is not uncommon. The SDIRA loans I've done are in that ball park. Some a little higher, most 50% or less. I call them "no brainer" loans when they are secured by local real estate, low LTV, and the borrower is an experienced RE professional who contributes (many times significant) capital.

Chris Martin · Answer

@Bryan H. do you have a reference/contact for this lender? I have <50% LTV long term hold property in Wake county and am looking for these kind of terms.

Mike Wallace · Answer

Yes I do buy and hold rentals. I just bought a 4plex for 99k under land contract, 36k down the rest at 4.5% 20 year amortization with a 3 year balloon.

Yes you are right, most owners i contact that have their multis listed dont like the idea of a land contract.

Im not looking at single family homes. 2 units and up.

Bryan H. · Answer

you want private money to fund your buy and hold rentals? I thought you were talking flips.

It's possible to get private money for long term, I've heard of some people getting pretty good terms, 1-2 points, 6% for 30 years.

But sounds like you want seller financing. Who are you buying from? Landlords or private owners? Another investor may take terms because they dont want to manage anymore and the income stream may be all they want. But if I was selling, I'd want all my cash now so I could reinvest it.

What are the terms of the LC you are offering? interest, term etc

Mike Wallace · Answer

I am looking for private money for rentals.

Whats my best option? I have capital. I have been offering sellers 30%+ down under land contract terms but only a few have liked the idea of a land contract.

Bryan H. · Answer

Common will be different in different regions. I can get 65% ARV with money for purchase and repairs. Of course you pay 3-4 points, 10-12%