@Terry Owens - Most hard money lenders charge rates for newbies around 11-13% interest only. With those rates it really doesn't make sense to hang on to a property for very long. Hard money is best used for purchase + rehab and to get out as quickly as you can. Otherwise you're just hemorrhaging money. The process is pretty identical across the board.
1. Vet the borrower
Credit / Experience
2. Vet the property
Is it a good deal?
This is done with a financial background check, BPO or appraisal, deal resume with title check, and examination of your scope of work with a feasibility report.
No pitch book but, get ready to send docs to verify your experience and credit worthiness.
Tips:
Don't pay anything over 13% way to high unless you are getting insane leverage like 100% financing.
Don't prepay for funding. Some guys may require a small application fee. The redflag is 1k or 2k to just start underwriting.
Your issue is with liquidity, what you need most is cash to close. This can be done by networking with your friends, family, and colleagues. Reach out to people around you, post lots of real estate articles and become "the real estate investor" in their network. You never know who is watching or may be able to lend you the money to close the deal. Your doctor, attorney, rich uncle can all be a valuable asset to your team.
You can offer them 8-10% on their money to invest then leverage their cash with a hard money lender for the rest. This is the typical way people finance deals.
20-30% Downpayement + closing costs - from PRivate lender
80-70% leverage from hard money.
Hope this helps good luck, =)
