Private Lending Fix & Flip Deal

[Natasha Graves]

Investment Info:

Single-family residence private money loan investment.

Cash invested: $20,000

Invested capital into 2 side-by-side Fix and Flips in the 21205 area of Baltimore City.

What made you interested in investing in this type of deal?

I knew the contractor and wanted to learn more about flips without going through the process myself.

How did you find this deal and how did you negotiate it?

The investor reached out to me directly as he knew I was in the market for new investments.

How did you finance this deal?

My own capital

How did you add value to the deal?

I lended on a deal that was tied up in a tough hard money lender that would not allow for higher allotments when the investor ran into an issue.

What was the outcome?

The contractor was able to dig into the basements to add an additional bedroom and bathroom for each property

Lessons learned? Challenges?

The hardest part was trying to figure out how to secure my capital in a deal that was already tied to hard money. As it was, if the investor was not able to perform, the HM lender would have first right to the property.