All Forum Posts by: Account Closed

Congrats! Those gross returns look incredibly juicy for what you put in to it :)

@Mallikarjun Reddy Pateel most institutional hard money lenders will want to see a minimum credit score of 620. There are hard money programs out there that can get a 30 year fixed loan to help purchase your property at 80% LTV but they usually want to see a 700+ credit score. I suggest working with a credit repair specialist to boost your credit score before trying to refinance into a long-term debt solution because it'll greatly affect your rate!

@Joey McKenna you can offer him an equity position on the portfolio, or a debt position. The debt side is pretty easy and would be handled like a private money loan. Offering 8-12% on his money until you pay him back is pretty standard for private money loans.

On the equity side, I've seen people offer between 10% and 50% of the deal for bringing in all of the money. It really depends on the relationship you have and the equity they want in the property.

Best of luck!

@Michael Vasiadis what's the purchase price of the deals you're trying to acquire? Do you have any questions about different loan products?

Lenders aren't allowed to solicit their business directly on the forums so all we can do is help you with info.

@Felix Caba It's not hard for a new investor to get a hard money loan. Just be aware that newer investors typically get less favorable rates and terms compared to more experienced investors and repeat borrowers. A new investor can expect to get up to 80% for the purchase price and 80% of the rehab costs and pay between 9-11% and 1-2 pts for origination fees.

Talk to multiple lenders to get quotes! Best of luck and let me know if you have any questions.

@Michael Vasiadis Great strategy, but instead of posting on BP to find a lender, I recommend asking your agent or property manager who they recommend. There are several nationwide hard money lenders who will do loans in Indianapolis, but they usually have high minimum loan amounts (in the $100K-$150K range). You also want to figure out how to refinance out of your hard money loan when you finish your rehab (you don't want to pay high interest for a long period of time). Let me know if you have any questions!

@Trae Robrock Most institutional hard money lenders are lending at 8-10% and charging 1-2 pts for origination fees. Their cost of capital is cheaper though since they're well funded. Many private money lenders charge in the 10-12 range and charge between 0-2 pts. 

As some members posted earlier, a lot of investors prefer to tag up with an established hard money lender to invest in their fund rather than lend on individual projects to protect their downside. In any case, make sure everything is well-documented before lending any of your money!

It depends on what loan you're getting. Usually, lenders will base the loan on your Debt to income ratio (DTI) and they'll look at what the payments will be after you refinance it with their rates instead of on what they currently are.

@Sahil Agnihotri 10% down is the way to go as long as the lender is able to do it and if you have decent margin to ensure you cashflow. You don't want to over leverage on a property if something goes wrong.

@Marlon Mendez congrats on getting into real estate investing! Most of the meetup groups have gone virtual due to COVID, but they should still be out there. Find flippers who will take your deals and learn what their buying criteria are. Best of luck!