Private Lending Strategies

[Brittany Trevino]

Hey Everyone!

I'd really like some feedback on different strategies everyone has used to obtain private lending or a partner who brings on capital. 

Some background on me, I am a Construction Superintendent and have overseen subdivision development to single family demo/rebuilds, I also oversee renovations for work and have managed my own renos. I have 1 rental and one personal home. I have the knowledge and deals, but I just can't seem to find anyone to help fund or invest in my deals. The people I spent time creating relationships with backed out because they aren't comfortable investing in today's market. How have you handled these types of situations? I attend a small meetup bi-weekly, I talk to local investors, I read books on networking and raising capital, I just don't understand where I am lacking. 

I greatly look forward to hearing your advice. Thank you!

[Andrew Garcia]

Hi @Brittany Trevino, what are your goals?

Are you looking for someone to fund the down payment or are you looking for someone that can finance 80-90% of the deal?

Answering these will allow myself and everyone else to answer your question better.

[Brittany Trevino]

Right now I’m looking for a partner to flip with. They would bring the money to buy the property and I would handle the entire renovation & costs to renovate. 

[Brittany Trevino]

Quote from @Brittany Trevino:

Right now I’m looking for a partner to flip with. They would bring the money to buy the property and I would handle the entire renovation & costs to renovate. 

 @Andrew Garcia

[Andrew Garcia]

Quote from @Brittany Trevino:

Right now I’m looking for a partner to flip with. They would bring the money to buy the property and I would handle the entire renovation & costs to renovate. 

 @Brittany Trevino, if you have the costs to renovate, you might not need to find a partner.

Since you have experience, you might be able to get up to 90% of the purchase price and rehab costs financed.

For example, if you are buying a $250k property with $50k rehab, you would need to bring $30k to the table, not $50k. Additionally, you will not need to split profits with a partner.

If you would like a recommendation, feel free to connect.

Hope this helps! Please let me know if I can be of any assistance.

[Chris Cascella]

Hey Andrew,

Are there still lenders offering to fund up to 90% of a deal? How are they comfortable taking on that level of risk in today's market?

Obviously they have the property as collateral but I can't see how the math works in their favor if they were to take over the property through foreclosure considering the costs involved. 

I would think something like 65-70% LTV would make more sense.

Thoughts?