Hi, I am new to the real estate business and i am looking at getting a starter home to live and flip for a short period of time. Without a large down payment, a lender has recommended several rehab loans. Looking for other people's insight and knowledge to see if this is the best option to get started as well as a safe option. The house has a lot of potential and just needs a lot of non necessity work such as refurbishing floors and putting drywall in. If anyone has any tips or recommendations they greatly appreciated. Thanks, Zach
Lender · Oceanside, CA · Member since 2014 · 39 posts · 50 votes
6y
Good Morning Zach,
Over the past 45 days a lot of private lending companies have changed their parameters quite a bit while increasing their pricing. With that being said, there are a lot of great companies out there depending on your target market. Unfortunately today in most instances, you could expect to come in with at least 20% + closing costs to close a hard money loan.
With that being said, depending on the market and scope of work, a lender may be willing to stretch the parameters for you but they will want to see the team you have in place as well as some ability to debt service the loan.
Now to your first sentence in your question, most hard money lenders will not extend you a loan if you are going to be living in the property. They will only write business purpose and non-owner occupied loans.
Feel free to message me directly with any additional questions. Depending on the market, I may have some direct introductions I could make for you.