Finding a Good Hard money Lender that Lends 100%of the project and on the project only

5 Replies

As a new investor I have looked many places in an effort to find a good solid hard money lender that will lend 100% of the project, solely based on the project, that can close quickly. Do you guys have any suggestions? 

Updated over 3 years ago

In addition one that has a free proof of funds letter available for free

@Rod Coleman   Welcome to BP! First off, I will tell you that what you want is extremely hard to find. It is possible, but it you need to have a solid track record of successful deals, and/or a REALLY profitable deal that justifies the risk. Lenders want as little risk as possible, therefore; your job is to mitigate that risk with money, experience, good projects in great locations. The more you have in those areas, the easier the money is to find. Good luck. 

They may be out there, but they won't be easy to find...

Between "new investor," "100% of the project" and "based solely on the project," a lender is likely going to find you to be a very high risk (nothing personal, just the facts you've presented).  And lenders only take high risks when they're appropriately compensated, which means you'd end up paying VERY high rates for such a loan.

The problem there is that at very high rates, loans like that can make even a better-than-average deal a money loser...as you'll pay a lot in monthly interest and other fees -- which reduces the quality of the deal.

My suggestion would be to fix one of the three areas you mentioned above -- get some experience, get some cash and/or build up your credit/income.

Understandable, however I have been involved in rehabs before as a carpenter, and as the foreman's assistant overseeing the projects from start to finish for the last 4 years.

Originally posted by @Rod Coleman :

Understandable, however I have been involved in rehabs before as a carpenter, and as the foreman's assistant overseeing the projects from start to finish for the last 4 years.

 If the projects that you were working on as a contractor went well, why not ask the investor you were working for if he'd be willing to partner with you on a deal or two?

Originally posted by @J Scott:
Originally posted by @Rod Coleman:

Understandable, however I have been involved in rehabs before as a carpenter, and as the foreman's assistant overseeing the projects from start to finish for the last 4 years.

 If the projects that you were working on as a contractor went well, why not ask the investor you were working for if he'd be willing to partner with you on a deal or two?

Yes they went well, the problem is he is a Realtor so if i bring him deals they cant be an REO, in other words if its a home owner he will finance the entire project. but he has access to the mls so He wouldn't need me for the type of deals i just recently found. However i am in the process of looking for a partner for what i have found.

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