Deal Complete- Hard Money Loan in Houston

[Nigel Prentice]

Investment Info:

Single-family residence private money loan investment in Houston.

I provided construction financing in the form of a hard money loan for a fix and flip in Houston, Texas.

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

I have some capital, but not a lot of time to do deals right now. So putting my money to work passively was a great option.

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

My college buddy is a successful real estate investor in Houston, who focuses on emerging neighborhoods where empty lots and dilapidated homes still exist. We have been staying in touch and decided to partner on this deal

How did you finance this deal?

I financed this deal through my personal savings.

What was the outcome?

Our target was to build and sell the house in six months, and we were able to do so in 3 months instead. The building process went smoothly, the permitting was handled on time, and we had a buyer before the house was finished.

Lessons learned? Challenges?

On this deal I learned that I could probably be a bit more aggressive with my lending terms. As my first deal this was solid, but I think I can charge more for access to my capital.