Hard Money thought

[Jose Diaz]

I had a thought today after reading some on hard money lending. I read that some HML lend up to 65-70% ARV.

Could the scenario exist where 65-70% ARV is the AS-IS value of the property, actually giving you the ability to fully fund the purchase (100%). It probably won't fund the full flip lets say, however we could attach a private lender or my own money to complete the rehab work.

Its this scenario possible? If it is, has anyone tried it? I am new to creative financing, so I am putting things together as I go.

[Brian Gibbons]

In a booming economy where it's easy credit was between the years of 2004 and 2006 you can have no skin in the game with Hard money. Your ability to resell was assured.

Now we need some skin in the game for the HMLs, no hard money lender once a problem. So expect some skin in the game.

Call the hard money lenders in your area has to and how much money do I need to have skin in the game. Even if you had a 50 per cent deal dollar deal with no repairs people going to want you to have something at risk.