Updated almost 11 years ago on . Most recent reply
Questions about Hard Money Lenders. I need help please!!
Hello Felow Investors,
Im a newbee investor and was lucky enough to find a really good real estate agent that works with new investors. We found an invesment property with an ROI of 16-18% in a really good area and we need to act fast as this is a hot deal. I was always told "find the deal and the funds will come in". Well I'm in that situation right now and it's not looking good.
My problem is that every hard money lenders that I talked can only fund up to 80% of the purchase price and requires me to come up with the other 20%. This also does not include cost for rehab construction. I can only come up with 1/4 of the funds for the required 20% and my private investors can only do so much. I do not have any funds available for the rehab construction and I am too early in the game and do not know any investors to partner with.
What can I do to resolve this issue? Are there any other alternatives to finance this deal besides Private Money lenders or partnering with another Investor? Are there any companies that can lend on both the purchase price and rehab cost? If so, can you please suggest who they are. I really need your help. Thank you so much.
Most Popular Reply
@Jay RoqueHave you tried small local banks in the area? Check with the commercial lending department. I've been able to get purchase + rehab funds for 20% down on the purchase price.
Or try saving more money before jumping into this. Worst spot you want to be in is doing your first flip and coming up short on funds.
Good luck!
- Tom