Flipper/Rehabber · Louisville, KY · Member since 2008 · 1k+ posts · 1k+ votes
I have done some hard money lending of my own funds and I dabbled in the 1 day transactional funding for short sales but that has dried up. Seems like what SS investors need now is 30 and 90 day funding to get around certain seasoning requirements.
But this is scary stuff since it is basically lending 100% of the purchase price on the hope that the purchase contract for the flip holds up...and we all know how many don't hold up.
I have heard of many of the "transactional lenders" trying the 30 day stuff but not doing it anymore. Don't know why.
Is anyone doing these loans, what are you charging? How are you protecting yourself?
I have some friends who seem to have some strong deals in Idaho and are looking for funding. I just talked with them today.
(REO purchase and fix up money for flip) Seems they have an inside track with a realtor there and their HML sources dried up.
Yeah, everyone seems to be looking for this kind of funding and I'd like to figure out a way to offer it.
But there are obviously pitfalls and I want to understand them before I jump in so I was looking for some people with experience.