Flipper/Rehabber · Virginia Beach · Member since 2021 · 19 posts · 6 votes
We are a construction/flipping company on the east coast Virginia area. (Currently averaging 40-50 deals a year). I know, everyone says that they are flipping that many a year, however for the sake of the question let's assume we really are doing that number to be able to gauge the amount of capital needed. I am curious if anyone has any experience who started flipping using hard money and then moved into private money. I hear a lot it comes down to track record, experience and other items. Where did you find investors past Hard Money Lenders once you established those items listed? Thank you for your time.
We are a construction/flipping company on the east coast Virginia area. (Currently averaging 40-50 deals a year). I know, everyone says that they are flipping that many a year, however for the sake of the question let's assume we really are doing that number to be able to gauge the amount of capital needed. I am curious if anyone has any experience who started flipping using hard money and then moved into private money. I hear a lot it comes down to track record, experience and other items. Where did you find investors past Hard Money Lenders once you established those items listed? Thank you for your time.
Jason
With a good track record of that many deals, you should have no problem at all attracting private money lenders for your upcoming deals. I do a fair amount of private lending and most of the flippers I work with, I met at REIA type meetups, so I would suggenst you attend as many of those meetings as possible. Tell everybody what you do and built good relationships with good PMLs. Both you and the PML will benefit. Check references and ask other flippers who they use for thier private money. Reach out anytime if there is anything I can do to help and good luck!
Hey Jason, We are both hard and private money lenders ALSO from VA Beach!! You are correct when you say that track record and experience play a role in private vs hard money. Credit score and liquidity are the other important factors that go into this. We ALWAYS try to fund deals with private money terms first because the cost of capital is a lot less than hard money. Credit score, liquidity, LTV, cash in the deal and the deal itself are the key components to private money terms. If we can't get it to fit in that box, then we will look at it as a hard money loan.
Hope that helps!
Bobby
Thank you for the response Bobby, I agree good credit and liquidity come into play big time. We always average about 15% of the deal using our own capital in each project we do. This comes in different forms of course as a lot of deals are different as I am sure have seen more than me if you are a lender. this thread has got me thinking from some of the responses and I believe some people to be spot on. You get so busy running your business and the day to day of it all, you don't get as much time to go out and build new relationship etc. I am going to start there and see what shakes out. Thank you for your time and maybe we can grab lunch or coffee one day since you are a local here in VA Beach.
I would love to! My office is on Northampton Blvd near Baker Rd
Hey Jay - I'm a realtor in Charleston and know of a few good lots around town if you're interested. Let me know. I have a few in mind depending on what you're looking for.