Hard (private) money, Brrrr in San Antonio Tx?

Question

I wish to accelerate my real estate investing and after buying my first property conventionally, I can’t tie up too much capital into another property. I think I’ll take a year to gain more insight and pay off my car loans and then look into a hard money or private money lender but I have to question if there is potential in San Antonio, Tx? What do others think?

I assume working with a wholesaler, a lender, contractor and property manager to get it figured out will be feasible.

What should I be asking these lenders?

Thanks for the read!

I assume working with a wholesaler, a lender, contractor and property manager to get it figured out will be feasible.

What should I be asking these lenders?

Thanks for the read!

Andrew Postell · Answer

@Jason Brown yeah, sometimes if it's your first deal a lender might limit you some on the loan terms.  By chance, do you own your own primary home?  A lot of us started with first buying our primary home, living in it for 1 year, move to another primary home, keep that 1st property as a rental type of thing.  You only need 3%-5% down for a primary home.  Just a thought.

Andrew Postell · Answer

@Jason Brown you can absolutely make this work in San Antonio. There are already lots of other people who are doing it right now. I would highly recommend you going to some real estate networking events in the area to meet other real estate investors. You might even be able to meet some hard money lenders that way as well. I would recommend Investmark Mortgage but there are others as well. The biggest, most important question that I can recommend asking is "WILL YOU LEND ME 75% OF THE ARV?" If the answer is "yes" then we're good. None of this "well, we lend 100% of purchase price and 80% of rehab" stuff. I need 75% of the ARV each and every time. That's why I would recommend Investmark.

Anyway, I hope all of that makes sense but post anything else if you need. Thanks!

Anyway, I hope all of that makes sense but post anything else if you need.  Thanks!

Kyle Mccaw · Answer

The finance market is changing daily. The question a few months ago was, "what are your best terms?" Today it may be, "will you even lend me money?" or "will you be in business long enough to complete the financing?"

Jason Brown · Answer

@Kyle Mccaw @Andrew Postell

I found a lender that did either the lesser of 70% ARV or 90% of the total project costs covered. Is that still not ideal to the 75% rule required to apply on your deals?

I did also reach out to Investmark. Thank you for the reference. They said that their max loan amount would be 70%. I asked what I can do to have it be 75% and need to wait for an answer.

Kyle Mccaw · Answer

@Jason Brown I would also recommend Investmark Mortgage they have a great reputation and will educate you along the way.

Chris Davidson · Answer

@Jason Brown. It is feasible. You need to make a plan have the vision and put the pieces together. Work it backwards. Do you have contractors for everything if not what holes do you have, and can you fill that with contractors or need to remove projects that involve that type of work. How much money are you going to need to put, your lender, and are you going to be able to refi out.

Before you start asking these questions work up your criteria of what you want and what you have. Then be honest and have a conversation with all the people.

Best of luck mate! And let me know if you have any overall questions.

Hard (private) money, Brrrr in San Antonio Tx?

Most Popular Reply