Hard money loan 100% LTV?

Question

I Have a property under contract for 50k that is ready to rent out at 800/ month that I planned on wholesaling, but I could get more money if I whole-tail it.

The house is currently worth 70k as-is, doing some curb appeal and the bathroom would make it sell for atleast 85k compared to the comps...

This is my first deal and I really don't have any money or my foot in the water..

I'm looking for advice on Hard money loans and if there's any that would do 100% LTV with no money down for 60k and a return in 90 days.

Is that even a thing?

I know there's sharks ready for me not to pay it back and I'm confident this property will sell within 90 days.

What not to do?

What to do?

Aseel Yerunkar · Answer

@Devin Meriwether You will likely not find a Hard Money Lender in this day and age who will find a purchase with 0 down especially if you are a new borrower with no investing history. HMLs can definitely lend up to 70% ARV for which in this case you already seem to be at, but most want atleast some skin in the game even if you hit that mark.

Depending on how big the difference is between the profits of the wholetail and wholesale, you might not wanna waste the headache/money (that you might not have) trying to close on this with an HML and just assign it off to make your quick buck. If it is a significant difference, you can find an HML to cover most of the purchase and partner with someone to bridge the gap for the rest of the funds needed.

The other option is to find your very own private lender (essentially just a person that has a large amount of cash themselves) and partner with them for the purchase or try to convince them to lend you money their money for similar terms as an HML except they do 100% financing.

Either ways, run the numbers and weight out the costs and benefits. PM me if you need further help!

Rick Pozos · Answer

Find another investor to buy it, make 5k and call it a day. Let someone else who has the money and the time to rehab a little take on the challenge.

When you find that person to wholesale it to, get to know them and ask them to fund your next deal or partner on the next one. You will make more money and gain valuable experience. You dont have to hit a homer on your first deal. Take a single, maybe next time it will be a double. At least you are getting on base to keep your average up.