All Forum Posts by: Matthew Bernal

Yes, hard money lenders will absolutely lend on a luxury home renovation of this size, but there are some key factors to consider.

Loan Size & Leverage

• Many hard money lenders have loan caps, but larger private lenders and funds specializing in luxury properties can go up to $5M+ per deal.
• Typical Loan-to-Value (LTV) is 80%-85% of the purchase price.
• Some lenders also offer After-Repair Value (ARV) loans at up to 70%-75% of ARV, which could allow you to leverage more capital.

Loan Structure

• If you’re using hard money for acquisition and self-funding the renovation, lenders will likely structure a bridge loan with interest-only payments.
• If you wanted renovation financing, you’d need a fix-and-flip loan, which has a draw schedule based on project milestones.

Terms to Expect

• Interest Rates: Typically 8%-12% depending on experience and deal risk.
• Points: Expect 1.5%-3% at closing.
• Loan Term: Usually 6-18 months (extension options available).
• Down Payment: Depending on the lender, you may need 15%-25% down.

Luxury Market Considerations

• Exit Strategy: Lenders will be cautious about absorption rates in high-end markets. Have a clear plan on whether you’re flipping or refinancing.
• Resale Timeline: Luxury homes take longer to sell, so choose a lender with flexible extensions.
• Comps & Market Data: Lenders will scrutinize your market comps carefully—be ready with solid data.

Recommended Hard Money Lenders for Luxury Deals

• Lima One Capital (nationwide, up to $5M loans)
• Kiavi (formerly LendingHome, great for experienced investors)
• RCN Capital (offers high LTV & ARV-based loans)
• Dominion Financial (fix-and-flip specialist)
• Private Capital Investors (custom luxury financing)

Key Takeaways

• Hard money is a great fit if you’re confident in your numbers and have a strong exit plan.
• Shop lenders to get the best terms.
• Ensure you have reserves to cover holding costs in case of a longer-than-expected sale timeline.

If you need help structuring the financing package or connecting with a lender, let me know!

Can anybody recommend good software for budgeting construction projects and creating detailed scopes of work? What are the pros and cons of the software you are currently using? 

@Chris Seveney 

Wow, that’s definitely a next-level challenge! Dealing with an HOA is tough enough, but one that wants the property demolished? That’s a whole different ballgame.

Are they giving you any flexibility to complete the build, or are they holding firm on the demo? Sometimes, getting an engineer or inspector to sign off on structural integrity can help sway them in your favor. Also, if there are other board members who might be open to compromise, it could be worth pushing for a variance or revised construction plan instead of a full teardown.

Curious—what’s your approach to getting this across the finish line? Sounds like a make-or-break situation, but also a huge upside if you can pull it off! 💪🔥

@Lisa Choi, thank you! Gotta keep the reader engaged! 

Hey Jason, great questions! Renting to Section 8 tenants in San Antonio, TX can be a solid strategy if managed properly. Here’s what you need to know:

✅ Pros of Renting to Section 8 Tenants

1️⃣ Guaranteed Rent Payments – The Housing Authority pays a portion (sometimes all) of the rent directly to you, reducing the risk of non-payment.
2️⃣ High Demand – There’s a strong demand for Section 8 housing, so you’ll often have a pool of tenants to choose from.
3️⃣ Longer Tenancies – Many Section 8 tenants stay long-term, reducing turnover costs.

❌ Cons & Considerations

• Inspections Required – The property must pass HUD inspections before move-in and annually.
• Tenant Quality Varies – Like with any rental, screening is crucial (more on that below).
• Potential for Property Damage – Section 8 does NOT cover tenant-caused damages (but here’s how to protect yourself).

🔹 What Happens if a Tenant Damages the Property?

• Section 8 doesn’t cover damages, but you can require a security deposit, just like with any other tenant.
• Charge for repairs – If the tenant causes damage beyond normal wear and tear, you can bill them or deduct from the deposit.
• Lease enforcement – If damages occur repeatedly, you can evict under Texas law.

🔍 How to Check Section 8 Payment Rates in San Antonio

👉 Go to the San Antonio Housing Authority (SAHA) website – They publish a Payment Standard Chart with the maximum allowed rents by bedroom size.
📌 Here’s the official link to check rates: SAHA Payment Standards (or search "San Antonio Housing Authority Payment Standards” on Google).

🔑 How to Select the Best Section 8 Tenants

Even though you can’t discriminate based on Section 8 status, you CAN still screen tenants carefully:
✅ Check rental history – Look for evictions, past landlord references, and late payments.
✅ Look at their portion of rent – If a tenant pays only $50/month, they may have less financial responsibility than someone paying $500.
✅ Require a security deposit – Helps protect against damage.
✅ Meet the tenant in person – See how they present themselves.

🚀 Final Thoughts

Renting to Section 8 tenants in San Antonio can be a great strategy if you screen properly and understand the rules. Make sure your property meets HUD standards, screen applicants like any other tenant, and be proactive in protecting your investment.

Hope this helps, Jason! Let me know if you have any other questions. 👍🔥

What’s the biggest challenge you’ve faced in a fix & flip? Let’s learn from each other!

Hey BP Community! I have an easy fix and flip located in the Chicago Heights area and am looking for a private investor to come in with the gap funding! 

**I AM NOT LOOKING FOR A HARD MONEY LENDER OR AN INSTITUTIONAL LENDER! ONLY RESPOND IF YOU ARE A PRIVATE INDIVIDUAL LOOKING TO USE YOUR OWN CAPITAL TO INVEST IN REAL ESTATE PROJECTS!**

Property Information:

Property Address: 169 Martin Lane, Chicago, IL 60411

Purchase Price: $95,000

Rehab Budget: $20,000

Hold Time: 60 Days

ARV: $210,000

Close Date: March 14th

Return Information:

Loan Amount: $40,000

Return: 15% Flat Return

Total Return: $6,000

Financial Snapshot:

Purchase Price: $95,000

Rehab Budget: $20,000

PML Contribution: $40,000

PML Return: $6,000

Total Loan: $161,000

LTARV: 76%

Lender Security:

Promissory Note

Personal Guarantee

JV Agreement

2nd Lien Recorded on Deed of Trust

Investor Name on Property Insurance

Investor Name on Builder's Risk Insurance

I am looking for a PML to fund the gap on an acquisition in Houston, TX. Please review details below!

**I DO NOT NEED A HARD MONEY LENDER, I AM NOT LOOKING FOR INSTITUTIONAL FUNDING. ONLY CONTACT ME IF YOU ARE AN INDIVIDUAL WITH LIQUIDITY THAT WANTS TO INVEST IN A REAL ESTATE PROJECT**

Project Details:
Address: 8005 Brandon Street, Houston, TX 77051

Purchase Price: $156,000

Rehab Budget: $24,000

Hold Time: 2-3 Months

ARV: $275,000

Investment Details:
Loan Amount: $56,000

Return: 15% Flat

Return Amount: $8,400

Loan Term: 60-90 Days

Use of Funds:
$42,600- Covers closing costs and down payment

$12,000- Covers startup construction costs$

1,400- Covers commissions

Security:

1. 2nd Position Recorded on Deed of Trust
2. Position on Property Insurance
3. Promissory Note
4. Personal Guarantee
5. JV Agreement

Hey everybody! I just got done analyzing this property with the Fix and Flip Analyzer. What would you do to improve it? 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Greetings BP Community!

I’m in the process of launching a wholesale and lending venture and am on the lookout for a robust legal team. The expertise I require includes assistance with coordinating transactions, structuring business entities, and crafting legal documents. If you have recommendations for attorneys in Indianapolis who specialize in real estate investments, I would greatly appreciate your input.