So I have been curious about Hard Money Lending. I've heard it mentioned time and time again on the BP Podcast. Statements are made about buying homes to BRRRR without any of your money upfront. I currently have enough liquid assets to fund a min renovation (20k). I've researched and contacted a couple Hard Money Lenders however all require 20% down. With homes in my area floating around the 150k-200k mark do I wait until I have the 35k-50k before trying this method? Even including the equity in my current home (Just purchased in Sept) I'm about 20K-30K short.
Does anyone have any insight or information as to how they have actually purchased a home to BRRRR without an initial out of pocket costs? Am I just crazy or misinterpreting something discussed in the various Podcast?
Thank you in advance.
@Joshua Harter it all depends on the HML. Most will lend 65-70% of ARV, but only a handful will require no money down if the deal is strong enough to warrant that. You just need to keep reaching out to lenders in your area, or ask other local investors who they use for HML.
@Sean Blomquist I really appreciate the information. Most that I have talked to will only go 80% LTV in its current condition. Being new to the Bigger Pockets website is there a place to search local investors within my area? I would love to network with them and learn as much as they are willing to teach me.
Thank you once again for the information,
@Joshua Harter Interesting. Those sound more like conventional lender terms, not hard money. As far as finding other investors you can just put it out there as a question about your area. Otherwise, look into your local REIA to see if they have any meetings, so you can network with other investors in your area.