Hard Money Lending

5 Replies

Hi. I am a new member of biggerpockets.com, and I am trying to do my first rehab. I was wondering if I can get hard money lending even though I don't have any money available in my bank statement. I don't have a good credit score and good income. I really want to start my rehab because I can do many works by myself like painting and changing the carpet etc.,

highly doubtful.... you would need family to take on that risk would be my thought.

HML these days ( unless your very established repeat borrower) will want 20% of total cost in cash at close..

as a HML in the day.. even in the go go days I would not have done a deal like you described.

If you have skills find the money partner.. get expreince build up your track record then you can branch out.

Originally posted by @Purevkhand Tserendondov :
Hi. I am a new member of biggerpockets.com, and I am trying to do my first rehab. I was wondering if I can get hard money lending even though I don't have any money available in my bank statement. I don't have a good credit score and good income. I really want to start my rehab because I can do many works by myself like painting and changing the carpet etc.,

The HML will typically need to see the 20% down and sufficient funds to service the loan for whatever the term is.

We have done 15 total projects with our HML and we pay 20% of the purchase price, plus 3 points on the total amount of the loan amount + rehab budget at closing.

no money, no credit and no experience.  I would say the deck is probably stacked against you.  If the deal is good, is reaching out to your family and friends an option?  If not, I would say you need to start working on saving some of your income and getting your credit back in shape.  Even if you can get some private money, you should still be doing this anyway.  Where there is will, there is a way...

I have worked with HML that give super high leverage, but even then, you will need the money to bring in for holding and closing costs (which includes the fees and interests). As Jim stated, getting some income and building a good credit OR you can JV with an experienced rehabber who has good credit.

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