Team Building in Louisville KY Area

5 Replies

Welcome to all BP Members:)......wishing much success to each of you!!!

Longtime lurker but first time poster here - currently looking to do some team building in the Louisville KY area. Does anyone have any experience/recommendations on a hard money lender that lends in this vicinity? I'd someone who can act quickly, has high integrity, and is, of course, familiar with the local market.

Also, how do most of you deal with capital gains on your transactions.....hold for >1 year, or just try to do deals as quickly as possible?


Lots of hard money lenders mentioned on here.  For our area I've been using River City Bank.  They are very investor friendly and typically require 20% down on any deals.   I have flipped, but I'm primarily a buy and hold investor.   If you're a flipper, you'll just have to pay those Capital Gains taxes, though you may want to look into a 1031 exchange... I'm not real familiar with it, but from my understanding you can skip paying taxes on a sell if you're using that money to purchase another property... perhaps someone more familiar can chime in on that.  

Thanks so much for the prompt (and thoughtful) response Kevin!!!

I appreciate any tips:)

I've done a couple of rehabs, and lean towards the buy-and-hold strategy myself.....but am willing to adapt as necessary, of course. I've been self-funded so far, and seem to have no trouble getting purchased/rehabbed/finished at the 80% all in level......but looking to increase volume (speed of deals) by establishing a banking relationship with someone investor friendly.  My goals are hopefully pretty modest.....maybe ultimately 2 deals per year, as I work full time.

I admit, that my knowledge is strongly focused on the nuts-and-bolts of the trades.....and so I'm on here, trying to enhance my ability to bird dog deals as well as finance them.

I've done a little research, and there's a fella buying distressed properties here and there in town, at roughly half of county tax assessment value (which seems to be roughly 80% of actual market value), then mortgaging the very same day at about assessment value.....then rehabbing and reselling within a few months. I believe one of his deals was funded through River City and another was through L&N Credit Union. I assume they may offer some sort of non-owner-occupied note for short terms, secured by the property. Any idea how/why he's able to do that?

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@Tye Hardin , I do this very thing. Except I do not mortgage (with a bank) same day with a 80/20 of ARV value. I generally use a private lender or hard money lender to get an 80% loan of renovated value. If it is your first time working with such a lender, they may want to

  • escrow the repairs and have lender reimburse repairs as you go, 
  • loan less, 
  • or order an appraisal for pre and post renovation (projected off your scope of work). I then do the work.  

I pay these lenders a 10%-12% rate.  Once the property is stabilized I then shop the asset to a bank and payback my short term lenders.  It is hard to start doing this until you have established trust.  It is much easier if someone who trusts you has money (mom, dad, etc.) and will back your first project.

River City is Great! We used them in our first flip, which we are finishing up now. They will lend 80% of purchase price and they will lend on 80% of the rehab costs as well if you want. We got an interest only loan ( six month note at 6-7%) with interest due at the end of six months. It has worked out great. If you need to extend, it's no trouble. Pay your interest that is due and Extend the loan for $100 processing fee. Then you owe only interest for however long you need the extension 

Thanks to everyone for responding!!!


So basically, you make offer and get property under contract prior to borrowing.....or are you "prequalified" due to your existing rapport/relationship with your lender(s)?

It almost seems to me like, as fast as some deals have to be brought down, that I'd have to be approved in advance, for a credit line so to speak......maybe with them reviewing existing assets/equity?

Or are they financing strictly contingent on the "deal property"?

Thanks for your time and wisdom-   


River City sounds amazing:)

I've been trapped in this "pulling yourself up by your own bootstraps" kinda thing ever since I can'd sure be nice to be able to leverage some equity and get the ball rolling a bit faster:)

Making a note to stop into one of their branches right away.....Highview maybe?

If all parameters (fico, dti, equity on existing properties, etc.) line up correctly, how responsive were they time-wise?

Did they grill you extensively on experience (i.e. would a couple of successful projects be adequate).....or are they more asset/repayment based on the qualifying as long as deal is 80/20? 

I appreciate your help-

I guess my concern is, if I ran across a potential project.......and needed/wanted to get it under contract quickly......could I do so confidently, knowing that I could obtain financing for it within a few weeks or a month?

I suppose any offer would need to be contingent on obtaining financing......which may not seem like a firm/legit offer to the seller(s).

Many thanks and successes to both of you for the mentoring!!!