Looking to use private lender for the 1st time
So I have an accepted offer on and 8 unit apartment building and now I need to provide funding of course. I've exhausted most of my funds buying 3 duplexes within the past year (and currently working on my 3rd flip). I've never used private or hard money lenders before but I think I need to take that step in order to move forward and grow my portfolio. I'm looking to borrow $50k for the down payment and plan on financing the rest with my local bank. Am I doing this right? And how do I find the right private money lender? I have some good things on my side...a little experience with landlording, flipping, I'm a licensed Realtor and have a close to excellent credit score. After running a report, the monthly cashflow would be $680/mo before repaying the loan on the $50k. Any thoughts or advice? I could use some.
Most Popular Reply
Hey @Chris Hernandez - congrats on getting a deal locked down. Most private lenders, hard money lenders, and non-bank lenders will want to be the first and only lien on the property, so it may not be possible to borrow $50K and put a second lien/further debt on it.
Why wouldn't you just finance the whole thing with one lender?
Also, are you looking to fund any renovations? Or are you just trying to finance the purchase?
- George Despotopoulos
