BiggerPockets

I'm seeking a hard money lender to purchase 2-3 investor properties. I need $100k with no credit checks, and skin in.
Pure hard money needed.

Tell me what you have to offer.

Are you asking for a loan with none of your own money involved and no credit checks? I don't think that exists anymore. Good credit and some cash are pretty much requirements these days.

I'm sure there's still venture capitalists out there that want to make some money.

Lenders let me hear what you have for me.

Originally posted by Michael Culler

You need a 640 Mid FICO score or higher, and some skin in the game.

If you have those things, then you can get a Residential Hard Money Loan.

If you are looking for someone to loan Hard Money with NO credit check, you are looking at more of a small Private Money guy that would be hidden somewhere in your local area. Well maybe not hidden, but you need to look in your local REIA, newspaper etc...

Michael what type of LTV are you looking for on an NOO? And what type of D/I are you looking for?

Originally posted by Michael Culler

Loans are based on After Repair Value. You can include rehab and closing costs up to 70% of ARV.

You will need to put in 5 to 15% of total project costs for "skin in the game". The amount of skin you need depends on your credit and liquid reserves

.

What your describing I can get anywhere, thats just a typical NOO loan.

I want a REAL hard money lender, they throw cash into the deal, and If I don't pay they get a house.

I've been in the mortgage business for 10 years, and have seen every configuration of loan.

I want some serious investors that want to make some money. I an buy three houses right now for $100k, and sell them off in a year or so for an easy $150k with renters already in them.

Who's up to play??

This has been discussed several times lately. The consensus is that this no longer exists. At least, nobody has been able to locate one. There are lots of brrowers chasing not-so-much money. So lenders can be picky. 65-70% of ARV, decent credit, and some cash is the new norm.

www.linkedin.com

Search some of the private equity groups, there's tons of them out there. I guess people on this site haven't expanded their search.

Originally posted by T C

Originally posted by Michael Culler

Loans are based on After Repair Value. You can include rehab and closing costs up to 70% of ARV.

You will need to put in 5 to 15% of total project costs for "skin in the game". The amount of skin you need depends on your credit and liquid reserves

.

I want a REAL hard money lender, they throw cash into the deal, and If I don't pay they get a house.

I've been in the mortgage business for 10 years, and have seen every configuration of loan.


Who's up to play??

First of all, a typical NOO loan will not be based on ARV. It would be based on LTV, with the value being the purchase price of the property no matter what kind of deal you are getting. Also you would not be able to include assignment fees, closing costs, or rehab costs. There are major differences between a typical NOO loan and what I was talking about.

Also, If you have been in the mortgage biz for the past 10 years, then you probably know that NOBODY wants to lend money with the intention of taking back a house.

Think about it. If I could buy a house for under 50 cents on the dollar; why would I want to take a house back from you at 70 percent ARV?

That is the reason you dont see small private lenders at your local REIA offering programs to bad credit people with no skin in the game.

All the smaller firms that did that have frozen LOC's or they got killed by investors who simply walked away and left them holding the bag.

You could perhaps raise private money from wealthy individuals who have no idea what they are getting into. That seems to be what most people have turned to. Perhaps create a partnership with someone who is cashed up? Advertise for people to outperform their IRA's etc...

1. You really need private funds. You asked for HML which is basically asking for the wrong thing. Several years back most hml shifted their markets into doing rehab loans based upon ARV. Many of those lenders are now gone and the ones left have really tightened up their guidelines which doesnt make them so much HML. But this is NOW, and those are still HML compared to what you would get from a mortgage lender or bank guidelines.

2. You're never going to get a venture capitalist to jump on a $100k loan. Thats nothing to them. Again, anything under $250,000 probaby needs to be private. There are a few commercial/hml that can do $250,000, $500,000, +++ that may be able to get what you want but most of them will require due dillegence fees. I'm working with a group out of CA thats buying small REO tapes and they wanted the same thing you did. The person I referred them to says he can fund these types of deals.

3. Search your local area for private lenders. Even private lenders are changing up their guidelines. Here locally in StLouis there are 3 major private lenders. Most now require that the borrower have at least $10k liquid verified. Most private lenders DONT want the house. They are in the business of lending money not investing into real estate. So having to deal with the mess that you'd potentially leave is a burden on them.

4. I have a source that claims they can do no credit, income, or asset checks for $50,000 and up anywhere in the US. Ltvs up to 80% but the owner says submissions should probably 50%-60% as most of their due dillegence on properties comes back with information that makes the property less attractive than what the appraisal would shows. I've given several investors his contact info and allowed them to discuss the loan scenarios direct with him. This company also wants due dillegence fees. Apparently this one company doesnt have a good track record. Some quick interet research really will make you think twice about using them. When you speak to the owner he is very professional and convincing that he can get these deals done. Due dillegnce fees on $100k would be about $1,000.

I guess I am confused. Do you want the investor to give you $50k, not give back the $50k but sign over a house that they will make maybe $100 per month on? Is so, that doesn't seem like a very good return for the risk of buying a house in that market.