Where do newbies have the best luck cutting teeth with private lenders? I have a great deal, great credit, 80% cash down, and would like to shop options. I have one lender, but would like to shop for comparison. It will be a fix and hold rental. $70 purchase price; need a 56k loan for 6 months until conventional loan comes through. Renovated value estimated to be $95-$110. If the contract is signed this Monday, 15 day inspection, closing in 20 (November 28th) Inspectors are lined up for next week.
Several of the lenders listed in the “network” section seem to lend only to LLCs or other entities, not individuals, is this largely the case? I stopped looking after 3.
Oops that’s 20% down.
If you're going to stop looking after 3 you're not going to find much.
It seems that most hard money lenders require llc's anymore. As far as private lenders, that seems like much more of a networking thing. I personally don't know any. I know a few people that have private lenders but they don't really want to share them because that's "their" money that they use for their rehab projects.
It seems like you may have jumped into this without doing much research in terms of the lenders. Is this not something that can be done through a conventional lender? You're holding costs would be much lower using this method if the house is in decent enough condition that a conventional lender who may even have a rehab package would lend to you.
Also they may end up removing this post as they seem to usually do with any posts asking about lending. It has something to do with the fact that anybody can come in here and try to get ahold of you and tell you they lend to you and then scam you.
Thank you Brian Thankfully I did enough research finding a couple for small transactions and I'm covered for this one; but I wanted to do some looking ahead research. Their potential is limited. I would be interested in following up with you, I think I understand what you are stating, but not sure. I've read the books, blogs, surfed the web but wish I could see a side by side comparison for the various lending options. I felt a little over whelmed by the process for each to find out any particulars about typical terms and criteria.
I thought there was an issue with this subject matter since there was such a delay in answering, and started looking for the delete feature, could not find that either. I welcome the removal of this post.
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