Hard money lenders who have you used?

Question

Hi! We are looking to purchase a fix and flip. There are so many online hard money lenders. Has anyone used any of them? Who is a good company to use for a first-time flipper. We have 1 STR right now. What are reasonable terms that everyone has seen on a hard money loan?

Connor Hibbs · Answer

Hi Wendy, For first time flippers you should be looking at about 75% of purchase + 100% of rehab funds. Your loan may also be capped at 65 or 70% of the after repair value. Rates at this point should be around 12%, but the with experience your terms get better quickly. By 3 experience you should be around 85-90% of purchase and have rates in the mid 10's.

Nicholas L. · Answer

@Wendy Abraham

can you go to meetups and network and try to find someone local? i wouldn't worry about getting the absolute cheapest loan / saving half a point - i'd try to build a relationship

hope this helps

Chris Seveney · Answer

@Zach Edelman

Be clear BP does not recommend companies - companies pay to advertise on BP and while BP I assume vets them - it’s still buyer beware

I am not an employee of BP but I want people to understand on BP and on most sites there are sponsors and affiliates but they may not be thoroughly vetted. I mention this as I have seen some people want to sue companies because they were a sponsored affiliate on a website…

Regarding the original post- expect 10-12% (I think latest I saw is avg is 11.5%) rate plus atleast one point for a 12 month loan.

Bigger companies may take longer for approval and can be more flexible usually in down payment amounts. I would post the details in classified section and let people give you quotes

Jay Hinrichs · Answer

try

Kiavi

Lima one

these are large lenders that will give you a baseline on costs.. then google hML Boise for locals pick up the phone or make an appointment.

Also you can call your local Escrow officer and ask who she/he see's doing private loans in your market..

Mike Finn · Answer

Hi @Wendy Abraham! I agree with @Connor Hibbs's comment on terms for first time flippers and if this is something you want to start doing more frequently I'd look for lenders that offer some type of rewards program to gain better terms through doing repeat business. That way you'll get better terms from your experience going up and through building a strong partnership.

Anderson S. · Answer

You're already in the right place Wendy. Terms are usually based on the deal, and your overall profile. DM me for more information if you want to chat!

Zach Edelman · Answer

Should be a list of Bigger Pockets recommended list of Hard Money Lenders to refer to as well/make the search a bit less overwhelming.

Robin Simon · Answer

Depends on really what you are looking for:

-Speed - some HMLS can go "no appraisal" so can close very quickly and beat cash offers if you are in a competitive market to buy

-Interest Rates - can range anywhere from around 8% to 13% (same with "points") but not usually as huge of a concern for flippers since the terms are so short

-Leverage - depending on your risk appetite / capital - this is also a top concern for some (almost always over and above rates/fees) can see anywhere from around 80% LTC to even mid 90s LTC (including 100% of rehab budget)

Hard money lenders who have you used?

Hard money lenders who have you used?

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