All Forum Posts by: Isabel Ortiz-Gelder

I'm looking to find a private money lender to help fund my first deal. I have the credit, the time, and the drive to find a great deal in Philadelphia, but don't have the capital.

I'm wondering what most private lenders/capital partners are looking for in return for funding down payment, closing costs, and potentially minimal rehab on a property, if I were to present them a great deal. Are most lenders looking for high interest, or 50/50 on a cash flowing property? What would that deal have to look like for them to feel secure in their investment?

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Originally posted by @David Edwards:

TLDR: Call around to lenders and see if you can find one that will help you aquire a property without a down payment if your numbers come in under 75% of ARV.

I am just getting into the game myself and I lucked into a lender that is allowing me to work deals in the following way:

When I find a property at under 75% of ARV including aquisition / holding / rehab costs then they will fund the whole thing without any cash outlay from me.

What they do however is have their own appraiser give them valuation for the property as is and the anticipated ARV given the rehab that I will complete (they require details on exactly what I will do to rehab the property) as well as my costs for the rehab.

I do have to pay about $500 for this appraiser, this keeps me from having properties evaluated that have no real chance, I still have to do my own review of the numbers to make sure it is feasible.

I do need to have some funds available to cover possible overage against my estimates but this is less then a down payment in many cases. How you aquire these funds is up to you. You could borrow from relatives, they would have a measure of assurance that the money would be safer so long as you run your numbers right and never have to tap it. Heck you could put it into a high yield savings account so that the Interest on that helps pay some of what you offer as interest on the loan. Point is to find deals where you really don't have to touch it, but you can if needed.

Long story short, one of the things they say you should do when entering market is make a list of banks, agents, contractors, and property managers and give each a call to see how they can with with you. Maybe you find a lender with something similar.

I did say that I am new to the game so it is likely that there are better ways of doing this that the experienced among us will point to, but to me, at this point, this seems like a great deal. I am hoping it allows for me to work on more deals in a shorter period of time with minimal cash on hand.

This is something I never would've considered as an option! Awesome that you managed to work it out that way. I'll be sure to ask around and see what different lenders are offering. Thanks so much, David

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I'm living in LA, looking to invest in a triplex in Philadelphia along the path of progress, and I've been trying to determine my best financing option. I was looking into FHA loans until I realized that the property would have to be owner-occupied and it doesn't seem as though there's any way around that...and I don't see myself moving to Philadelphia anytime soon just to make that work!

I do have a good credit score, so I could potentially qualify for a conventional loan, but even then I just don't have any capital for a down payment and I'm feeling stuck.

If anyone has been in this position before, I'd love to know what creative ways people have overcome this kind of roadblock! I'm extremely eager to put in the work and take action so I can invest in a property within the next month or two, but the funding poses a problem at the moment. Any guidance would be much appreciated!

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@Justin Wotring Congrats! You made it happen!

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@Koleton Daley I'll definitely check the older episodes out and explore more here on BP! I'm going to continue to educate myself on other markets out there, but since I'm just getting started I'm wondering if it would be smartest to invest locally first? Would love to know your opinion on that

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Hey everyone! My name is Isabel Ortiz, & I'm a twenty-something living in Los Angeles, very new to real estate investing. A more experienced investor actually introduced me to the Bigger Pockets podcast after making it clear that we wanted the same thing: financial freedom...and that investing is a powerful way to achieve that. I got hooked & have been studying up on the BRRRR method, and am hoping to invest in a property this way as it seems to be the best path. Currently I'm looking to invest in multifamily outside of California (from what I've learned this market isn't the greatest at the moment), preferably in the Philadelphia area.

The goal is to learn as much as possible, build a solid network, & land my first deal very soon. I'm looking forward to all the knowledge and connection this space has to offer!

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All Forum Posts by: Isabel Ortiz-Gelder

Isabel Ortiz-Gelder has started 3 posts and replied 6 times.

Post: What do "Private Lenders" look for in return?

Post: New Investor With No Capital-Creative Financing Options?

Post: New Investor With No Capital-Creative Financing Options?

Post: Closed on my first property last week!

Post: Newbie Investor from Los Angeles, California

Post: Newbie Investor from Los Angeles, California