Securing a loan with a hard money lender.

5 Replies

Hello all! 

I am interested in finding a hard money lender to work with to purchase my first flip project and wanted to know what to expect and questions I should be asking aside from the normal ( int. rates and terms). I think this is a good way to secure my first property and feel it is a pretty safe way to get started. I do have 10k in cash I planned on using for renovations. Also have money in my IRA that could be used if need be. Looking at a purchase range of 50-70k and holding no longer than 3 Months. Thanks for any advice!

@Thomas Berridge , you cannot commingle you IRA and personal funds.

A hard money lender will probably not lend to your IRA since it requires a non-recourse loan.

The only way to use your IRA is for it to purchase the property 100% and pay for the fixes too or partner with a non-disqualified person.

You can search for self directed IRA on BP to get more details.

Thanks for the reply Percy! So maybe finding a deal then presenting it to the lender would be a better way to go? I own my home but do not have enough equity just yet. Could get another mortgage but the 20% down would eat up my savings. Just looking for a way to get started. I have found a couple foreclosures I KNOW could bring a nice return just need to figure out the money part!

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Hey Mark, 

Thanks for the reply. Cant seem to find the message you left. Do you have contact info I could reach you at?

This post has been removed.

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