All Forum Posts by: Odie Ayaga

@Philip Tuazon the short answer is you don't "get them" to do anything they do what they do based on how they lend. Some lenders lend based on LTC (loan to cost), some lend based on LTV. I don't know any that do one or the other based on the borrower. Some may be LTC for a certain seasoning period then be LTV based while others may be LTC regardless if you purchased 10 years ago.

You still need cash to get into a hard money loan. I'd say minimally you need to be able to come up with 30K from whatever sources you can to make it work and that's even at 100% financing.

Sorry to hear about your experience. I see a lot of people default to telling people looking for lenders to use the toolbar up top. I always try to dissuade that kind of response unless that person has personally vetted every lender listed there. I always use personal referrals. It doesn't guarantee a better experience (sometimes good lenders go bad and sometimes good lenders have bad transactions), but I think it increase the likelihood of a good one.

I would say if your plan is to eventually house hack you cannot use hard money. You need an exit strategy that does not involve you living in it. In other words, when you tell your hard money lender that your exit strategy is to refi and move in they would not extend you a loan. If that's your plan and you tell them otherwise that would be fraud.

Yes I do know a lender in PA you can speak to

Welcome @Carolina Campbell! The first thing I'd do is break your questions out into separate posts. When people see multiple potential complex answers they're less likely to respond. Hard money lenders prefer to lend on fix and flips, banks prefer to lend on less risky ventures. If you're looking to fix and flip hard money is a good place to start looking and if you're looking to do rentals I'd start talking to banks.

Also I think you may have put the cart before the horse as I think it's beneficial to know what you want to do in real estate before forming and paying for an entity that may not best suit your needs. With 3 members there's a lot that can go wrong and it's easier to dissolve or get out of something like a joint venture than an LLC. Best of luck to all 3 of you and keep us posted how it goes!

Hard money

You would probably do best working with commercial lenders at banks first

Unfortunately you won't even have the option of hard money since it's owner occupied. As you said you won't be able to qualify for conventional so I don't see it working without help, either a cosigner, seller-financing, private lending, etc.

Hi @Jason Yun welcome to BP! What is your work that brings you to central NJ?