Updated over 2 years ago on . Most recent reply
Hard Money Lender for first time investor
Does anyone know any hard money lenders that are willing to work with your deal based off the ARV? No seasoned assets, credit checks or bank statements?
how much money would I have to come out of pocket to work with a hard money lender in a fix and flip deal?
Most Popular Reply
Hey Jorge,
Great to hear that you are jumping into the game and sounds like you have a good property to start.
So the money out of pocket is going to fluctuate quite a bit based on the lender, but no matter what in the HML space, most groups are at the very least credit 'informed', meaning that they would at least do a 'soft' inquiry and a back ground check to decide the terms and the risk of the investment from their perspective.
Of the lenders that I work with, there are a few that do no asset seasoning, and that is something that it feels would be VERY important to clarify on the front end of any deal you do. Most lenders will at least do a bank statement of some kind to confirm that you have the cash to close at least.
Otherwise, I would anticipate around 15%-20% down for your first time. With exceptional credit, there is a potential for more leverage, but that would be best to iron out with a broker or the lender on the front end.
I hope that helps! Let me know if I could help additionally in any way.
Great to hear that you are jumping into the game and sounds like you have a good property to start.
So the money out of pocket is going to fluctuate quite a bit based on the lender, but no matter what in the HML space, most groups are at the very least credit 'informed', meaning that they would at least do a 'soft' inquiry and a back ground check to decide the terms and the risk of the investment from their perspective.
Of the lenders that I work with, there are a few that do no asset seasoning, and that is something that it feels would be VERY important to clarify on the front end of any deal you do. Most lenders will at least do a bank statement of some kind to confirm that you have the cash to close at least.
Otherwise, I would anticipate around 15%-20% down for your first time. With exceptional credit, there is a potential for more leverage, but that would be best to iron out with a broker or the lender on the front end.
I hope that helps! Let me know if I could help additionally in any way.