How to find a private lender and what percentage makes it work

Milwaukee, Wisconsin
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How to find a private lender and what percentage makes it work

Duane A. Snow
WI · Member since 2023 · 74 posts · 24 votes

Here I go int jumping into the game of Landlord or maybe airbnb owner. I am quitting the 8 to 5 and concentrating on this. I was a property manager for a decent company and want to do my own thing. May even take care of personal homes for those seasonal owners on the lake. But, getting back to me. I would like to find a private lender that ma take rental price into situation but we do have access to $150000 from home equity. With lower credit score myself because I did not do credit much it is hard for a bank to see if they want to take me on. I can get a VA loan but again my debt to income with being on this house with my girlfriend and new car is making it hard for banks. Please help. I want this for my family.

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
Quote from @Duane A. Snow:

Here I go int jumping into the game of Landlord or maybe airbnb owner. I am quitting the 8 to 5 and concentrating on this. I was a property manager for a decent company and want to do my own thing. May even take care of personal homes for those seasonal owners on the lake. But, getting back to me. I would like to find a private lender that ma take rental price into situation but we do have access to $150000 from home equity. With lower credit score myself because I did not do credit much it is hard for a bank to see if they want to take me on. I can get a VA loan but again my debt to income with being on this house with my girlfriend and new car is making it hard for banks. Please help. I want this for my family.


Quitting your 8-5 is worst thing you can do if you are looking for private money. People will still want to see income and net worth on your PFS. You mention you also have a low credit score, between that and no income you will have a very hard time getting a loan, you could look at DSCR but that is getting more difficult as well.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Duane A. Snow:

    Here I go int jumping into the game of Landlord or maybe airbnb owner. I am quitting the 8 to 5 and concentrating on this. I was a property manager for a decent company and want to do my own thing. May even take care of personal homes for those seasonal owners on the lake. But, getting back to me. I would like to find a private lender that ma take rental price into situation but we do have access to $150000 from home equity. With lower credit score myself because I did not do credit much it is hard for a bank to see if they want to take me on. I can get a VA loan but again my debt to income with being on this house with my girlfriend and new car is making it hard for banks. Please help. I want this for my family.


    Quitting your 8-5 is worst thing you can do if you are looking for private money. People will still want to see income and net worth on your PFS. You mention you also have a low credit score, between that and no income you will have a very hard time getting a loan, you could look at DSCR but that is getting more difficult as well.

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  • Account Closed
    Accountant · San Diego, CA · Member since 2019 · 1k+ posts · 552 votes
    2y

    As a private lender for first time borrowers, I want to see low LTVs <70% and a good grasp on how the deal is going to go, what exit strategies are possible, and realistic expectations. For someone like that, we do 12% and 2 points interest. For good borrowers we defer interest payments and points payments until after the deal closes. 

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  • Jacob San Luis
    Member since 2024 · 3 posts · 1 vote
    2y
    Quote from @Duane A. Snow:

    Here I go int jumping into the game of Landlord or maybe airbnb owner. I am quitting the 8 to 5 and concentrating on this. I was a property manager for a decent company and want to do my own thing. May even take care of personal homes for those seasonal owners on the lake. But, getting back to me. I would like to find a private lender that ma take rental price into situation but we do have access to $150000 from home equity. With lower credit score myself because I did not do credit much it is hard for a bank to see if they want to take me on. I can get a VA loan but again my debt to income with being on this house with my girlfriend and new car is making it hard for banks. Please help. I want this for my family.


     As a hard money broker that's worked with different lenders I'd have to see what your credit score is and it seems like you're also looking for a cash out refinance from your current property if I'm not mistaken? 

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  • Caroline Gerardo
    Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
    2y

    To secure the VA loan you need w-2 income in same line of work, as it will take two tax cycles to show self employed net income.

    Get the credit score up, pay on time, get that car sold or pay off, don't quit your job until you have a replacement job. If you plan to do property management in this area get your website up and running, get some paying clients, social media, and all the legal done first.

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