All Forum Posts by: Tim Ivory

Good idea, I have some family members I could reach out to and some friends who may be interested.

I don't mean to say 30K isn't a lot, just relatively speaking, compared to 350K, or the loan amount itself, 220K. If it was me personally, I'd really want to get to know the person and the deal before investing that amount. I'm happy to talk anytime to go over the plan, the scope of work, contractor arrangements, and even personally walk through the houses if anyone is near Morristown TN. I know the owners personally, so no chance the deals will get stolen, haha.

Oh wait, local BP meetups? Where do I find those friend?

Yes, the next meeting is a few weeks away. But good point, might be worth my time to even travel a few hours if I find one in a few days. No time like the present!

Please keep the ideas coming!!

The topic should read, where to find private investors to finance the downpayment on the hard money loan. Apologies, wish there was a way to edit the title of the post atleast. 

Hey guys, I ought always thank you guys for all your wisdom and guidance on this site. I've learned a lot so far.

I've come across two residential rehab investment properties with awesome numbers, 100k net each. There should be no problem getting the hard money, just need the downpayment funds. Is the best place to locate private money here in the marketplace?

I already have a detailed scope of work on one of the properties, so already got the ball rolling, just need to get the financing in order.

It'd be such a shame to let these deals go by. The comps and neighborhoods are beautiful, hot area, should sell quickly.

How would you guys go about it, if all of your funds were tied up, and still pull the deal off?

Hey guys, I ought always thank you guys for all your wisdom and guidance on this site. I've learned a lot so far.

I've come across two investment properties with awesome numbers. They are both residential and in a beautiful neighborhood with solid comps. There should be no problem whatsoever getting a hml to approve the deal, each has around 100K in profit after all fees, so there is a large margin of safety to work with. Each house has arv around 340K. They are also on the same street!

The problem is, I don't have any funds at the moment for the downpayment on the hml. It'd be such a waste to see these deals pass by. I'd need as little as 15K-32K on each deal and possibly less if I can purchase one of them Subject to the existing financing.

I'd love some options. Can you recommend a way to find private financing on the deal in exchange for a percentage return? I already have a detailed scope of work on one of the properties, so already got the ball rolling, just need to get my financing in order.

Also, another question for those so kind enough to answer. Is there a preferred way to structure the terms of the promissory note for PM loans? IS it a percent return in interest, or a flat return of say 150%?

Thanks for your reply.

Please clarify, if I want any money from any private investor, I must give them a lien on the property. Is this correct?

So, trying to get a HML and one from a private investor, I'm essentially creating two liens to do the deal.

Some HML, do allow second liens.

I realize this is a pretty convoluted way to go about doing things, but I only need to do it once or twice, and if I do it correctly, I'll have enough capital to not require PI.

Any thoughts would be greatly appreciated.

I spoke with some HML about using funds from another private lender (or partner) to serve as the downpayment on the loan. Some places offer 100% loan to cost, others require 10-15%. They suggested I could use a back room deal with another private investor for this purpose, or put them on the llc and it would work, so it seems possible. This is good, because it's my only way to proceed forward at this point. I don't have any funds at all!

Assuming this is possible, how would I structure the agreement with the private investor who will cover the downpayment on the HML? Do they get a second lien position, assuming the HML allows this? Or is the deal structured in some other way?

What percentage return should I offer them, or flat return, assuming I need 15K in capital?

Since I have no funds for the downpayment, I also have no funds if they structure the renovation drafts to reimbursable and they don't upfront the drafts, so potentially, there are two sources of financing I need to consider - downpayment on the loan itself and any upfront renovation drafts (reimbursed each time)

I realize I'm totally scrapping the bottom of the barrell with precious little as a starting point, but I'm sure others have made it in the past before and I'm hoping I can do the same following the wisdom of other investors every step of the process.

I'm also considering a rehab only loan, if the sellers would allow this and split the profit with him, thus negating a sizable downpayment on loan (if any) and I'm only need to contend myself with the much lower rennovation loan costs, to which HML or private investors would be an option.