Hard Money Loans and Private Investor Funding

Rehabbing & House Flipping
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Hard Money Loans and Private Investor Funding

Christian Esparza
Member since 2021 · 5 posts · 1 vote

Hello Everyone,

I recently got my license to become a Mortgage Loan Originator. I have been working with a broker for a couple months now. I am interested in getting into real estate investing, specifically to do rehabs and flips with the ultimate goal of buying homes to keep as rental property. I have a few questions:
1. Does anyone know the best ways of generating leads as an MLO? I have been cold calling and trying to build relationships with realtors in the area. It has been working okay, but nothing too great.
2. Hard money loans for flips: I have found quite a few lenders that provide hard money loans with a down payment of 10%. I was wondering if anyone knows of any legit lenders who provide hard money loans with a smaller down payment? I have found a few companies that claim to provide 100% of funding for the home and the rehabs, but the companies seem sketchy. Also, I am sure it's possible to get a hard money loan with a smaller down payment, but I am assuming it is only for those people whom have experience and who they have already worked with.
3. I know a few people who do rehabs and flips, but they tend to be very limited with the information they provide, which is understandable since I would be competition for them.

I am extremely thankful for any information anyone may be able to provide!

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  • Andy SabischPro Member
    Investor · Jackson, MS · Member since 2021 · 657 posts · 559 votes
    4y

    As far as promoting your MLO position, realtors are just one piece of the pie.  Join a local REIG and get your name out to those in the group.  Look up Facebook groups that serve your area and focus on real estate investors including wholesale, investing and flipping sites.  Let them know that you are available, what you are offering and that you are investor-friendly.

    HML's will want to see you have some skin in the especially with no experience. If you see someone advertising 100% purchase and rehab programs check for the application fee which will probably result in you being turned down and them keeping the fee. Without experience and recent experience, you will need to put money down. As you gain experience and show that your system works and you are dependable, they will call and offer you funds. They make money only when they lend it so if you build a track record you will have the money available to you. Also, remember that they will want to look at the deal and if they say no, ask them why because they might have seen the fatal flaw that you overlooked - HMLs can be a great resource.

    As far as input on flipping, use the BP family as we are more than happy to help and avoid costly mistakes . . . .

    Let's help you get on that investing highway . . . . 

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  • Christian Esparza
    OP
    Member since 2021 · 5 posts · 1 vote
    4y

    By REIG are you referring to Real Estate Investing Groups? I have joined a few within the last few days. I will be sure to interact more with individuals on there today and moving forward. Anyone have any other ideas for generating loans?

    I did not look for an application fee as I was not aware that those existed. I did see a few who were offering 100% of the funding including the rehab on the property, but when I spoke to them on the phone and checked out their website/reviews it seemed a bit sketchy.

    I have found a few who will offer a loan with 10% down, but it's typically for investors whom they have already worked for. Many of them are asking for around 25-30% for first time investors, which is understandable, but I live in LA/OC area. Homes in these areas (even fixer uppers) tend to be on the expensive side. Most fixer uppers cost around 250-300k which would require a down payment of close to 100,000 with a HML. Anyone have any ideas as to what I can do to get a lower down payment or other creative ways of structuring deals where less money is required.

    Thank you all for any help you can provide. 

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