I found the deal, now I need to find the money

[Chris Barnett]

Hey guys,

My brother and I am just starting out in real estate investing. We have been looking for properties to begin our joint endeavor. He has done two previous flips and is a full time real estate agent, this is my first deal and I am taking the real estate exam in a few weeks to get my agents license.

We found a deal, however, our private money investor is going thru a major life event and is unable to fund the endeavor. I hear the podcasts guys say, if you find the deal the money will come..... so I need help finding the money.

Where do I look for investors? What information do they need? I have never done this before so I’m open to any and all ideas. I can not, not find the funding we need.

Any help would be greatly appreciated. I’m gonna make this happen, just point me in the right direction and I’ll put in the work.

[Jerryll Noorden]

Originally posted by @Frank Hinck:

@Chris Barnett

The origin of the term "hard" money loan refers to the hard property, and the loan is evaluated on the deal - not on your personal finances tho you will likely get credit checked. You will need to provide a very detailed analysis of your deal showing mainly purchase price, construction costs, and comps of the ARV. You would put down generally 20-25% with a HML and then they will finance the purchase and take a 1st position. Hard money would be used for a Flip or the initial B in a BRRRR. HMLs are expensive and should be considered into the project costs. They will charge likely a few "points" percentage points as a minimum fee, and then interest on the loan which could be due monthly or at the end. When you need construction disbursements you apply for a draw and they wire it once proof of hitting a construction milestone is provided. Once you Rent and Refinance you would pay the hard money back, or once you flip it and sell you would pay the hard money back.

 In theory, yes.

But in reality..

not really.

They still want to put your assets on the line, it is not JUST the house you are flipping on the line. They do look at credit scores and they do ask you have experience flipping houses.

All this goes into the deal. They are not simply going to give you money just because you have a deal. A deal is nothing if you ruin the deal or the house itself, for lack of experience turning deals into actual money.