Newbie w/ first deal under contract, Looking for a private lender

Investor · Buffalo, NY · Member since 2017 · 3 posts · 0 votes

Hey BP, I'm a new investor in the Buffalo, NY region. I currently have a deal under contract and I'm looking for a private lender to fund the deal and hopefully future deals as well. Although I'm new to the industry my competitive edge is that my business partner is a contractor who's done rehab jobs in the past. This will just be the first deal under our LLC and implementing the BRRR strategy. Looking for a loan amount of $70k to cover purchase price, and rehab with the ARV sitting at $170k. Any referrals or advice would be greatly appreciated. Currently attending local meetups as well to network.

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Matthew Irish-JonesBusiness Member

Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes

@John Hawks I understand and see this a lot. Just keep in mind, with this arrangement, he gets paid no matter what, you do not.

You need a HML. There are both local and nation wide HML people. Some are listed as vendors on this site. Others can be found fairly easily with an internet search.

Good luck! Most partnerships start with good intentions.

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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
4y
Quote from @John Hawks:

Hey BP, I'm a new investor in the Buffalo, NY region. I currently have a deal under contract and I'm looking for a private lender to fund the deal and hopefully future deals as well. Although I'm new to the industry my competitive edge is that my business partner is a contractor who's done rehab jobs in the past. This will just be the first deal under our LLC and implementing the BRRR strategy. Looking for a loan amount of $70k to cover purchase price, and rehab with the ARV sitting at $170k. Any referrals or advice would be greatly appreciated. Currently attending local meetups as well to network.

Hey John,
How much will you be needing to finance the repairs? What is the purchase price of this property?
[email protected]818-269-7983
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John Hawks
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Investor · Buffalo, NY · Member since 2017 · 3 posts · 0 votes
4y
Will send you a private message.
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Ryan Deasy
Lender · Farmington, CT · Member since 2015 · 542 posts · 321 votes
4y
@John Hawks hi, also curious about the exact purchase price and rehab. i may have a good fit for you.
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Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
4y
@John Hawks how did you get a deal under contract without financing already set up?
Partnerships are great… when they work. How is your contractor being paid? His work + portion of the profits?
If so, you have all the risk and less of a competitive advantage as you may have first thought
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John Hawks
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Investor · Buffalo, NY · Member since 2017 · 3 posts · 0 votes
4y
Quote from @Matthew Irish-Jones:

@John Hawks how did you get a deal under contract without financing already set up?
Partnerships are great… when they work. How is your contractor being paid? His work + portion of the profits?
If so, you have all the risk and less of a competitive advantage as you may have first thought

We were able to get the property under contract without financing due to having a personal relationship with the seller.
His work + portion of the profits is how my contractor will be paid. With him being an equal partner of our company, he cares more about the success of the company than his personal compensation and is willing to do the work for less than he’d charge anyone else.
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Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
4y
@John Hawks I understand and see this a lot. Just keep in mind, with this arrangement, he gets paid no matter what, you do not.
You need a HML. There are both local and nation wide HML people. Some are listed as vendors on this site. Others can be found fairly easily with an internet search.
Good luck! Most partnerships start with good intentions.
Irish Jones Realty4.947 Reviews
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