Looking for a good hard money lender

Buffalo, NY · Member since 2015 · 4 posts · 0 votes

I have a property that im trying to get funded on. It it an assignment deal. The wholesaler is making a large sum on the deal, although it is still a good deal for me. My problem is that im having trouble because it is an assignment and the lenders have only been willing to lend 10% of the cost of the total price of the house that goes towards covering the assignment fee. Has anyone ever ran into this issue.

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Javauhn Nelson
Wholesaler · Orlando · Member since 2026 · 15 posts · 3 votes
5mo
I’ve run into that before — a lot of lenders won’t fully cover assignment fees.

I’ve been in touch with a lender that’s pretty flexible with investment deals and moves fast. Not sure if they’ll be a fit for your situation specifically, but I can connect you if you want to reach out to them.
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- William Eaton
  OP
  Buffalo, NY · Member since 2015 · 4 posts · 0 votes
  5mo
  Quote from @Javauhn Nelson:
  
  I’ve run into that before — a lot of lenders won’t fully cover asysignment fees.
  
  I’ve been in touch with a lender that’s pretty flexible with investment deals and moves fast. Not sure if they’ll be a fit for your situation specifically, but I can connect you if you want to reach out to them.
  
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- William Eaton
  OP
  Buffalo, NY · Member since 2015 · 4 posts · 0 votes
  5mo
  Quote from @William Eaton:
  
  Quote from @Javauhn Nelson:
  
  I’ve run into that before — a lot of lenders won’t fully cover asysignment fees.
  
  I’ve been in touch with a lender that’s pretty flexible with investment deals and moves fast. Not sure if they’ll be a fit for your situation specifically, but I can connect you if you want to reach out to them.
  
  Yes please share your lenders contact info, thank you.i really appreciate the help
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William Eaton
OP
Buffalo, NY · Member since 2015 · 4 posts · 0 votes
5mo
Quote from @Jonathan Lee:

Hi William,
Yes, this is actually pretty common with assignment deals, especially when the assignment fee is large. Most lenders will finance based on the property value or original contract price, and they’ll limit how much of the assignment fee they’re willing to cover—often around 0–10%. It’s not necessarily that the deal is bad, it’s more about how lenders view the risk and valuation on paper.
Feel free to message me to discuss further and I will see if I have lender that can assist.

Yes im defidently interested in a lender that can help fund this deal. Thank you
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Devin PetersonBusiness Member
Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 664 votes
5mo
Quote from @William Eaton:

I have a property that im trying to get funded on. It it an assignment deal. The wholesaler is making a large sum on the deal, although it is still a good deal for me. My problem is that im having trouble because it is an assignment and the lenders have only been willing to lend 10% of the cost of the total price of the house that goes towards covering the assignment fee. Has anyone ever ran into this issue.
Yes I know a Lenders who don’t have a cap
[email protected]860-538-3672
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Matthew BernalBusiness Member
Investor · Austin, TX · Member since 2021 · 497 posts · 126 votes
5mo
This is a common issue with assignment deals and you've already identified the core problem — most lenders underwrite to appraised value not contract price, so when a large assignment fee inflates the contract above market value they won't cover the full amount.

Two paths that work for this situation. First, a lender who underwrites to ARV rather than contract price if the deal still makes sense at the ARV the assignment fee becomes less of an issue because the lender is looking at what the property is worth not what you're paying on paper.

Second, ask the wholesaler about a double close. They close on the property first then sell to you, your contract shows just the purchase price without the assignment fee embedded and standard lenders can fund it cleanly.

Happy to take a look at the deal and tell you which approach fits best.

What's the contract price, the wholesaler fee, and the ARV on the property?
[email protected]832-981-3190
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