All Forum Posts by: Rochelle Gerber

Hi Rochelle -

Congrats on getting started with BRRRR and fix/flip. The reason you're seeing these terms often comes down to experience. For first-time or newer investors, lenders tend to be a bit more conservative with leverage and rates because they consider experience a key factor in risk assessment.

As you build a track record of successful flips/rehabs, you'll typically qualify for better terms, like higher leverage/reduced down payments. Once lenders see that you’ve proven yourself, it can open up more favorable terms, and some might even go as high as 90% or more on the purchase.

hi river! thank you for the input. we actually have 20 years of experience. are you saying that after we have experience with the company? got it, if so

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Modesto/Merced, California

Quote from @Jay Hinrichs:

Quote from @Rochelle Gerber:

Quote from @Jacob Sherman:

How much would you be putting into construction on this one ?

see below but 75,000-90,000. husband is a builder w/25 years of experience. we can self fund the construction. i just don't want to put 20% down to acquire the property. ideally 10% down so we can do the construction. will dscr in 12 months when done.

try conventus or Kiavi

thank you i will

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Philadelphia, Pennsylvania

Quote from @Mohammed Rahman:

@Rochelle Gerber

What you're experiencing is pretty standard with hard money lenders asking for 20% down, especially in today’s market where lenders are cautious.

Hard money is typically all about the deal, so if you're bringing in 20% for purchase and covering rehab, you’ll need to assess if the deal can still make sense after those upfront costs.

One potential workaround is to look for lenders who might offer 100% rehab financing based on the ARV, or you could consider bringing in a partner to cover some of that 20%.

Also, depending on your network from BPCON, see if anyone has connections to private lenders willing to do higher leverage, especially for strong deals like yours with a solid ARV.

thank you. i will definitely reach out.

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Modesto/Merced, California

Quote from @Jay Hinrichs:

Quote from @Rochelle Gerber:

Hi everyone! Came back so excited from BPCON to really get going w/BRRRR and fix/flip. Finding it really hard to get decent hard money. Presenting average deals of : Puchase price 350-400,000. ARV 550-600,000. Hard money (multiple lenders such as Easy , Griffin, etc) all quoting barely 80% of purchase price so I will still have to come in with 20% (deal limiting if I am also putting all the money in for rehab). Can someone help advise what I'm missing? Why would I use hard money with all the points and fees if I have to put down 20% anyway?

well because those are the only companies that do fix and flip loans.. Most banks or credit unions simply wont do them post the GFC.. U have all sorts of HMB on this site that broker for direct lenders and they quote 10% down 100% rehab funds maybe its just a come on and it does not really exist ????

all the numbers i am getting back want more than 10% and over 10,000 in closing costs putting a total of close to 90,000 down.

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Modesto/Merced, California

Quote from @Jacob Sherman:

How much would you be putting into construction on this one ?

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Philadelphia, Pennsylvania

hi! we can self finance the construction. we do that all the time. trying to scale faster now. we historically have bought conventionally, then paid for the ADU/JDU ourselves. husband is a builder so he self-performs. this project is a 2 BR home on a double lot in oakdale ca. rental shortage, we always have a waiting list. we will build another 2 bR but ADU style, material and sub costs close to 75,000-90,000. almost under contract for 350,000 for the SFR, can put 30,000 down. will ARV at 510,000 at least for 2 dwellings and both properties will rent for 2200 each (DSCR exit)

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Philadelphia, Pennsylvania

Hi! Came back so excited from BPCON to really get going w/BRRRR and fix/flip. Finding it really hard to get decent hard money. Presenting average deals of : Puchase price 350-400,000. ARV 550-600,000. Hard money (multiple lenders such as Easy , Griffin, etc) all quoting barely 80% of purchase price so I will still have to come in with 20% (deal limiting if I am also putting all the money in for rehab). Can someone help advise what I'm missing? Why would I use hard money with all the points and fees if I have to put down 20% anyway? We have good credit and cash on hand, but if I have to put 100,000 on a deal like this, why bother?

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Philadelphia, Pennsylvania

0 Votes

Modesto/Merced, California

All Forum Posts by: Rochelle Gerber

Rochelle Gerber has started 2 posts and replied 18 times.

Post: Struggling to find decent hard money

Post: What type of challenges are you facing obtaining financing ? I'm here to assist

Post: Struggling to find decent hard money

Post: Struggling to find decent hard money

Post: What type of challenges are you facing obtaining financing ? I'm here to assist

Post: What type of challenges are you facing obtaining financing ? I'm here to assist

Post: What type of challenges are you facing obtaining financing ? I'm here to assist

Post: Struggling to find decent hard money