Looking for Private Money Investors
Hello:
I have two rehabs in progress right now. Both are SFR that I purchased with cash and is under rehab.
I am seeking or looking for private money investors, who can lend upto 75% - 80% LTV @ 7-9% interest for 1-3 years. The loans shall be backed with a promissory note and 1st lien on the mortgage.
Both the projects that we have are around 120K all in costs with ARV's between 140-150 on each of them. There is enough sweat equity in the projects.
Please let me know if you are interested, and I would be more than glad to talk more details.
Thanks for reading!!!
@Vishal Gadhia Is that cost and ARV breakdown for each property separate or is that the combined numbers for both projects? If it is separate I could come in with the following structure:
-Up to 70% LTV
-30 year term and amortization
-Fixed periods of 3 or 8 years
-Starting interest rate of 7.49%
-Middle credit score of around 650
-Average 2-3 week close
Let me know your thoughts.
@sean richway both are separate properties with almost close ARV and LTV
You mentioned 30 year amortization does that mean the loans are principal and interest loans.
Does the interest rate get better with better credit score
Are there any points on the loan?
@Vishal Gadhia The loans are interest only. There is a PPP tied to the fixed period but during that period you can pay down the principal balance by 20% per year and once the PPP expires you can do whatever from there. The interest rate does not, you could buy it down to 6.5% for 2 points. This structure typically carries 1-2 points.
If you owned additional properties we could visit doing a portfolio loan structure where we blanket those properties as that offers a more conventional rate. The min loan amount there is $500K so not sure if that fits with you at the moment or not. Let me know your thoughts.
This is an interesting idea. We have always used traditional banking for our deals, especially our buy and holds...but we are in the middle of a flip in Houston, TX, and the hard money rates were a shocker. We expect a 3-6 month rehab, and we are looking at a local lender (jet) and the rates are 4 points and 13.9%...is that normal? I know when it allows you to do a deal, it's really great, but it is just shocking. :) any others have experience? I think private money would be great!
@sean richway both are separate properties with almost close ARV and LTV
You mentioned 30 year amortization does that mean the loans are principal and interest loans.
Does the interest rate get better with better credit score
Are there any points on the loan?
@Vishal Gadhia See me response above related to your latest questions.
@Karen Cook Those are a little steep for hard money. Send me a PM or email to [email protected].
@Sean Richway, what are the PPP terms, I get the 20% per year with no penalty, what is the start rate of PPP and how does it fall down every year?
Yep is normal from Jet, I have private money lenders that lend 12% with 4 to 6 points on the back end.
@Vishal Gadhia On the SFR properties it is 3% for the fixed period. After the fixed period ends the PPP disappears as well.