How do you find private money lenders?

Question

Here’s my situation!

Found a piece of land that the owners are now going through litigations. Not only that the land has been up for sale for 245 days. Both of these factors plays a role in my thinking hey maybe they would be to sell if I found a lender that can close fast and pay cash. If I can get this property for 150k-200k that puts me in the sweet spot.

Surrounding 2 bed 1 bath houses in this neighborhood are going for 625k-650k which mean if I purchase this plot for 200k build a new similar 2 bed 1 bath house for estimate of 350k on the building costs to be safe, that puts me all In at 550k leaving a margin to sell for 50-100k profits.

My questions is what kind of loans do I look for for development or should I look. For private lenders?

Jack McWatters · Answer

@Jay Hinrichs hey jay, I really appreciate it honestly that’s really true there’s always a ton of background stuff people kid and people pointing those out is super helpful because you might end up saving a good chunk of money from that!

Jay Hinrichs · Answer

OK both make sense now  So Cal  good luck with it.. one thing i see is folks just dont account for all the cost when doing a new build or flip.

Its not like the TV shows where they leave out a huge chunk of reality. for instance just title and escrow buying and selling can add up to 3 to 5k alone. no one ever mentions that on TV :)

Jack McWatters · Answer

@Ray Evans thank you for the advice I’ll definetly look into the loans you mentioned and also it’s tough for me to talk about it because people brush me off I’m too young, by hat doesn’t stop me from trying and ima still continue to move forward and try to find deals.

Jack McWatters · Answer

@Jay Hinrichs

Thank you! I actually gave myself almost 100k buffer in the overall build cost just to make sure it covers all the extra cost. For instance on average it costs a bit 200/sq ft to build a 2 1 in brea Ca! So I gave a 100k buffer to cover any unexpected costs. So in theory there’s a chance that the deal would yield more profit.

Ray Evans · Answer

@Jack McWatters If you would qualify for a loan to build a 350k house you should easily qualify to buy the land.A credit union or bank or google land loan,some companies specialize in that type of loan.If the land is paid for it’s not too tough to get a construction loan to build the home.With carrying costs excetra It may not be that great of a deal.Since you asked about Private Lenders the best thing to do is to talk about what you do to everyone you know.Dentist Doctor friends relatives and tell them to pass it on.I have owned an LLC for two years and still have relatives say ( I didn’t know you bought houses)smh

Best of Luck!