Private Money vs. Hard Money
Alright, so this is my situation:
I have a team of contractors that are ready to roll as soon as possible. I've got a project manager in place (because I can only dedicate part time hours to the actual rehabbing process), and I'm shopping several different properties in the area.
I was really surprised when I started doing some hunting and seeing 30, 40, 50 thousand difference in LP and Tax-assessed value here in Fort Wayne. So, everything is ready to go, now I just have no clue how to pull the trigger.
I don't have much in the way of start up capital. My credit is fair, not great (yet). I'm wondering which would be a more suitable use of my time (hence the name of the topic). Will I be forced to seek private money investors because I won't have a suitable down payment, or are there HML's out there that will lend against ARV with no down payment?
In addition to that, I could really use some guidance on what steps to take next here. I've made so much progress in the last month, but now I'm completely stalemated because I don't know what to do next.
And while I'm at it, do I need to make an offer on a house first, then contact the HML? Or should I get in contact with them in advance? I've heard some say that I need to have the house under contract before seeking lending.
Thanks friends!
-Adam