Investor · Winter Haven, FL · Member since 2015 · 74 posts · 10 votes
Hey BP I’m curious to know if there are any programs out there that will fund deals even if I have little to no collateral to put up? I will say I have over 100k in my own money to use but most of the lenders I’ve spoke to always look for collateral and I understand why but with the prices of some of these distressed homes I need a little help to get myself going any advice would be appreciated.
Lender · Fort Lauderdale, FL · Member since 2023 · 33 posts · 19 votes
3y
What do you mean by collateral? You mean little to no closing costs + down payment? If so, you can see if your lender in your state offers down payment assistance programs/grant programs to help with costs.
There's also loan programs out there with as little as 0-3% down.
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
3y
@Gerardo Lewis The collateral is the property you're buying. If you have $100k of your own money to put into the deal and the lender finances the rest with a lien against the property, it shouldn't be too difficult to put together a deal.
Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
3y
@Gerardo Lewis You need a better lender. Even in today's market, unless you're looking at $500k+ houses, you should have plenty of equity and a lender won't need collateral beyond that.
Investor · Winter Haven, FL · Member since 2015 · 74 posts · 10 votes
3y
@Kelsey Jurewicz No I mean whenever I spoke to lenders mainly hard money they always say I need collateral for them to do business with me among other things but I think I should ask more questions. Its my first time dabbling in flipping houses so I guess I get nervous when it comes to financing it.
Investor · Winter Haven, FL · Member since 2015 · 74 posts · 10 votes
3y
@Tom S. Ok thats good to know like I said to Kelsey I have to ask more questions and found out more about the programs I'm inquiring about. But I have a little over 150k of my own money to put into that's why I was surprised I was getting so many barriers to get started. Hopefully I can get this going in the next month or 2
Investor · Winter Haven, FL · Member since 2015 · 74 posts · 10 votes
3y
@Jason Hirko O yea I'm definitely not looking for homes that high in price. Since I'm starting out I'm looking for any deal that looks promising even if its just a condo or townhouse. If you have any suggestions on lenders to speak to that operate in Florida I'll appreciate the help.
Investor · Belleville IL · Member since 2018 · 13 posts · 9 votes
3y
@Gerardo Lewis I use Lima One. They're a hard money lender and they'll work with new investors. You'll need some amount of liquid. 100k is PLENTY for mid range properties. They loan up to 90 +/- of the purchase price and 100% of rehab cost. Individual terms may vary but the property is the collateral. Like most hard money lenders, you need to have money upfront to start the rehab and they will reimburse you as you progress. Maybe you'll spend $20k the first two weeks and then you request a draw to be reimbursed. It's fairly easy. I sent you a connection request. DM me if you want to discuss or send an email to Adam Corona at Lima. Good luck!