I have invested in RE for many years but now want to learn how to flip houses in my local market - Ventura County, CA.
My question is will hard money or private lenders loan the full purchase and rehab costs on solid, viable deals or are they looking for investors to come in with a percentage so that investors have some skin in the game? If they want investor $$, typically what percentage are they comfortable with?
typically you need some cash in the deal once you get established with the lender this can change over time.
One reason to find a great lender and stick with them... I know I jump through a lot of hoops and do whatever it is I can do to keep my stable happy.
I have clients that are still with me since I started in 2001.
The ones I have in my REIA group offer 65 to 70 percent of ARV and 20% cash in the deal. There are 3 or 4 offering basically the same thing. Watch out for up front fees
I think two or three of the hard money lenders I have talked to will lend 100% of the purchase and repair costs. In return, they expect a good portion of the profit and also some control over the rehab process. I don't remember the exact details, but if you shoot me an email to remind me, I can see if I can dig up their information when I get out of work so that you can contact them directly.
thanks Cornelius. I'd really love to have those lender names. Where are you based and what is your RE Niche?
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