Hard Money in Brooklyn, NY

[Tom Bud]

Hi everyone ,

I'm, a new member here at BP. I am a brand new investor about to do my first flip, and have little I can spend on the project, so I'm looking to borrow the full sales price (I believe this is possible?). Is it possible for HML to lend out rehab costs as well? I believe I have enough to cover my rehab costs but I wanted to know all of my options.

Also, is there something I should keep in mind when using a HML other than high interest costs and filing costs associated with obtaining the loan?

Thanks and happy investing!

Tom B.

[Will Barnard]

Borrowing from hard money lenders for full purchase price on your first or even third deal is going to be tough to find, most will only lend up to 70-75% of purchase price so to cover the gap! you will need a private money second or a money partner.

Things to watch out for: Only use a reputable lender, watch out for all the fees (appraisal, loan app fee, processing fee, notary fee, points, etc), be careful of those who may promise one thing but have more intention or ability to perform on it (over promise, under deliver), and make sure you fully understand all the docs you are signing.