New to working with Hard money and private lenders for a Flip in Asheville, NC

[Lex Layton]

Hey BP crew! I have experience with house hacking and am an interior designer by trade, I am very ready to start flipping homes in my area of Asheville, NC. I have never worked with private money lenders or hard money lenders, and would love some guidance on where to start, who to reach out to, etc. I am having trouble finding REI groups here in AVL so coming to ya'll. Thanks!

[Erik Estrada]

Quote from @Lex Layton:

Hey BP crew! I have experience with house hacking and am an interior designer by trade, I am very ready to start flipping homes in my area of Asheville, NC. I have never worked with private money lenders or hard money lenders, and would love some guidance on where to start, who to reach out to, etc. I am having trouble finding REI groups here in AVL so coming to ya'll. Thanks!

 Happy to connect!

[Jonathan Greene]

With your design experience you definitely have a leg up to flip, but the Asheville market is pretty steamy hot. Tough for buy in, but nice for out value. Hard money can be a bear for a first-time flipper. You will be at 12-14 percent and 2-3 points, but hopefully your experience means you know some tradespeople who can do the work. I am buying an A-Frame in Black Mountain now. If you want to connect with my agent there, she may have some resources for you for different money.

[Lex Layton]

[Lex Layton]

Quote from @Jonathan Greene:

With your design experience you definitely have a leg up to flip, but the Asheville market is pretty steamy hot. Tough for buy in, but nice for out value. Hard money can be a bear for a first-time flipper. You will be at 12-14 percent and 2-3 points, but hopefully your experience means you know some tradespeople who can do the work. I am buying an A-Frame in Black Mountain now. If you want to connect with my agent there, she may have some resources for you for different money.

Yes it sure is a hot market,  I have confidence I can get a nice out value and yes I do have some good tradespeople on call, but brand new to navigating lenders (do they need to be local?), and don't know what could be a scam, etc. I do have an agent friend I planned to work with, but I would love to talk to your agent as well. Thanks!

[Jonathan Greene]

Quote from @Lex Layton:

Quote from @Jonathan Greene:

With your design experience you definitely have a leg up to flip, but the Asheville market is pretty steamy hot. Tough for buy in, but nice for out value. Hard money can be a bear for a first-time flipper. You will be at 12-14 percent and 2-3 points, but hopefully your experience means you know some tradespeople who can do the work. I am buying an A-Frame in Black Mountain now. If you want to connect with my agent there, she may have some resources for you for different money.

Yes it sure is a hot market,  I have confidence I can get a nice out value and yes I do have some good tradespeople on call, but brand new to navigating lenders (do they need to be local?), and don't know what could be a scam, etc. I do have an agent friend I planned to work with, but I would love to talk to your agent as well. Thanks!

Local lenders will do better in terms of winning properties, but they don't have to be mom and pop. Send me a DM and I will connect you with Caley. She works with a lot of investors and developers in the area.

[Mitch Davidson]

Hi @Lex Layton. I can intro you to some good local PM and HM lender options. And, a friend and I host two BP meetups here in Asheville, one on the evening of the third Wednesday and one on the morning of the fourth Wednesday. Our September evening gathering happened just last evening, with a dozen or so of us roundtabling about STR and viable options. Next Wednesday, we'll meet upstairs at The Rhu at 9AM, with a general focus on the same topic. Our meetups are intentionally conversational, networking focused, etc. And 200 or so of us have a local Slack channel as well. Beyond that, I would also highly recommend AVL Meetup and CREIA as well. I'm happy to discuss more if you want to message me.

[Anderson S.]

We're happy to jump on a call with you to go over things. Generally speaking, hard money loans are often used by investors who need quick funding. The higher costs are offset by the speed and flexibility of the financing.

[River Sava]

Hey Lex!

I work quite a bit in the Asheville market and have a few resources and connections that might be helpful for you. I’d be happy to share what I know and help where I can. Would love to connect!

[Lex Layton]

Quote from @Mitch Davidson:

Hi @Lex Layton. I can intro you to some good local PM and HM lender options. And, a friend and I host two BP meetups here in Asheville, one on the evening of the third Wednesday and one on the morning of the fourth Wednesday. Our September evening gathering happened just last evening, with a dozen or so of us roundtabling about STR and viable options. Next Wednesday, we'll meet upstairs at The Rhu at 9AM, with a general focus on the same topic. Our meetups are intentionally conversational, networking focused, etc. And 200 or so of us have a local Slack channel as well. Beyond that, I would also highly recommend AVL Meetup and CREIA as well. I'm happy to discuss more if you want to message me.

 Hey Mitch! I'm planning to attend the next meetup with a friend and agent at The Rhu. looking forward to meeting.  Thanks!   

[Mitch Davidson]

@Lex Layton Great to hear! A really talented local investor, Christin Austin, will be leading the discussion. I'll be out of town, sadly. I'm happy to connect by phone in the meantime if you like, and to help you start connecting to some local money options. I'll DM you.

[Account Closed]

Hi Lex, thank you for posting this! I recently moved to Greenville, SC and am also looking for hard money and private lending options in my area of northern South Carolina. I have completed a full single-family rehab in Iowa through personal funding and decided to BRRR. Since the Greenville market is also very hot, I would love to learn more about different lending options available in this market.

[McKenzie Stouffer]

Here is my primary profile!

[Mike Klarman]

Here's some things to consider:

1. Open an LLC, the HML and PML loans usually require you to close in an LLC

2. Make sure your ARV is spot on. When you find an asset you feel is worth it, dig into the comps for the sales of similar houses for the last 6 months. Then throw out the highest and lowest comp and then take the average of what is left. That's a reasonable ARV estimate

3. Check your credit and make sure it's as good as you can get it.  Anything over 700 is good.

4.  Start talking to LOs and Broker now.  Get pre-approved and have them send you the letter so that when you submit offers you can submit the pre-approval as well.

5. If you are just entering the borrowing environment, then come with as close to a cookie cutter project as possible.  That is an interior heavy rehab, i.e. remodel kitchens and baths, new floors, fresh paint.  Don't so anything crazy.  

[Richard Loniewski]

More than happy to answer any questions you have on hard money lending