Private Money

5 Replies

Hello All,

Just wanted to get some feed back on private money individuals. Is it common for a private money investor to lend on high LTV deals (ie. over 80 or 90%)? Covering the purchase and rehab costs, if flipping? Or is this the proverbial unicorn....?? Thank you...

Hi Bill,

I just joined, but I do not see this answered yet so I will answer this for you and anyone else. It is very uncommon to find a Private Money Lender doing anything above 70% LTV ARV ( After Repair Value ) I hope this helps and finds you. Let me know if you have any more questions or would like to set aside some time to talk about this further.

Regards,

James W. Pickett III

Hi Bill,

I just joined, but I do not see this answered yet so I will answer this for you and anyone else. It is very uncommon to find a Private Money Lender doing anything above 70% LTV ARV ( After Repair Value ) I hope this helps and finds you.

By my definition, Private Lenders are people you know -- friends, family, professional contacts, etc. And because these are people who know/trust you, in my experience it isn't at all uncommon for them to lend 80%, 90% or even 100% of a deal -- including purchase and rehab. (I'm not saying they necessarily should be lending this much, but many do.)

In fact, I'd say about 50% of my deals these days are 100% financed via private money...

All of my lenders lend 100% of purchase and rehab, so long as it doesn't go past 70-75% LTV.

No savvy lender will go past 80% is it puts the lender and the project at a far greater risk of failure.

Thank you all for your insight....

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