if i found hard money lenders to cover the cost for a 15 unit apartment should i do it if i can prove the numbers work?
currently i am broke and have no credit
Broke + A 15 unit apartment = Disaster
Borrow money from your family to get started.
@Derek LeBlanc not sure without looking at the deal in full detail but the two main questions I have are
1) Did you allocate money to reserves?
2) What is your strategy to get out of the hard money loan?
Derek it's simply not going to happen with hard money lenders.
They want skin in the game and you have zero experience unless you do and you just forgot to mention that part. Do you have other properties you own that have equity that can be put up as collateral??
Sounds like at this point maybe you get under contract for a good price and assign it for a fee to another buyer to build up capital.
Hard money lenders typically will never go higher than 60% LTV, and most of the time 50%. If you're broke, where are you coming up with the balance?
Partnering with a more seasoned investor might be your best option. IF the 15 unit complex is truly a deal then I would connect with others in your area who are interested in this type of project. Connect through BP, REIA, Meetups etc to establish connections. I would also change the way you phrase your situation....stating "currently I am broke and have no credit" is not a turn on for other investors. Talk more about what you bring to the table. Do you have a plan for the project? Putting together a solid business plan for the project can go a long way to potential partners. Most experienced investors want to see value on your end (besides the property).
If you have no experience, no credit, and no money you will not get a loan by yourself. Even a hard money loan/bridge loan. On top of that how would you get out of the loan?
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