@Shavas Flowers For my first few rehabs, I did seller financing for the purchase, and brought in a combination of friends funds and credit cards for the rehab. At least that way, I wasn't paying any points, extra fees, or very high interest rates (the CC's were 0% and friends money 6-8%). Seller financing was fixed at 6%.
After the rehab, I went to a bank and got a conventional loan, paid off the seller finance, friends and CC's, and was able to pull out enough to move to the next place.
After a few of those, I was able to go to HML's with enough experience. That said, I ended up going to local banks and asking for purchase + rehab funds (commercial lending department). Far less expense and less risky, as no refinance after the rehab was required.
Hi, it's going to be tough to find a HML for inexperienced flippers. I was in your shoes and I partnered up with an experienced investor and was able to "use" their experience to qualify for the loan. All the best.
Hey I am new real estate and wanted to know the best hard money lenders for inexperience flippers
I would not recommend using hard money when starting out. It's very expensive especially if you have no experience and you will still need to put cash in. Hard money is meant for experienced flippers and fast deals as the interest will eat up your profits quick if the project drags on. The best way to get started is by finding private lenders and or partnering with experienced flippers. Before any of that you need to educate yourself thoroughly on the business and the market. Thats where the money is made.
Hey I am new real estate and wanted to know the best hard money lenders for inexperience flippers
I could give you a name but here's the bottom line, with no experience it's about one of 2 things, you demonstrate you have significant cash reserves (could be your reserves or someone else's as long as the someone else is committed) or you partner with someone with experience. Regarding the cash reserves- It's not about using all your reserves but you must some skin in the game. Having reserves means you're able to take care of surprises that may come up (And eventually surprises will come up)
@Shavas Flowers For my first few rehabs, I did seller financing for the purchase, and brought in a combination of friends funds and credit cards for the rehab. At least that way, I wasn't paying any points, extra fees, or very high interest rates (the CC's were 0% and friends money 6-8%). Seller financing was fixed at 6%.
After the rehab, I went to a bank and got a conventional loan, paid off the seller finance, friends and CC's, and was able to pull out enough to move to the next place.
After a few of those, I was able to go to HML's with enough experience. That said, I ended up going to local banks and asking for purchase + rehab funds (commercial lending department). Far less expense and less risky, as no refinance after the rehab was required.
Renovo is one of the biggest hard money lenders in Chicago. They are somewhat easy, not super cheap, but probably still competitive. I've used them and was satisfied. They will review your experience before deciding to give you a loan.