Private Lenders for Down Payment
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.
That’s perfect. Thank you so much. Makes the numbers much easier to work with for sure.
I guess it will depend what that private lender is willing to do... that's a catch-22 question to me... If you can get somebody to invest in you, they will invest in you. If I did the math correctly in my head, you have only $10k of safety margin, right? Otherwise, you won't have enough to payback the private lender.
Also, where is your contribution in all of this?
