Private Lending & Conventional Mortgage Advice

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Michael Garrett
  • New to Real Estate
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19
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Private Lenders for Down Payment

Michael Garrett
  • New to Real Estate
Posted Jan 19 2022, 12:50

Will private lenders lend money for a down payment and renovations costs on a BRRRR deal?

e.g. I am interested in a duplex listed at 119 that needs some work. I would try and get for less than 109K. DP at 21K and some loose renovations around 20K. ARV would likely be around 175 based on neighborhood comps with income being close to $1500/month (Before all other expenses). Using the calculator after refi and with property management, the income is roughly $200. A solid 1%+. This would be my first deal and first experience trying to use a hard money lender. What would they require in the mean time while the house is seasoned and we wait for an appraisal and refinance.

Bigger question:  how do you overcome the fear of renovating this beautiful place and not finding a renter... !?  lol.  

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