@Rich Emery
Yes you can private lend through any situation - comes down to what is the risk involved in the transaction
Lower the risk the easier it is to get $
We put four deals in the pipeline over the past 2 days. We ask for a lot of the same stuff we do on a flip, but we also complete a different ap for the general contractor and as for items such as insurances, plans, permits, scope of work, GC license, GC's driver's license, etc. We also get the entity info including the articles of organization, the operating agreement, EIN info (IRS SS-4 form), Certificate of Status, 2 month's bank statements, a Track Record Worksheet from the Borrower, and a handful of other items. We're going to want to see that you've at least done a handful of flips and that you're not swinging for the fences the first couple of times you step to the plate. Yep...it is a thing.
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Yes. The most ideal scenario for the lender is for the property to have no other liens, and to take first position.
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Quote from @Rich Emery:
Yes definitely, find a hard money lender that does a lot of "fix and flip" loans, many will also do some construction financing on a smaller, non-institutional level
Rich,
Yes, there is a plethora of private lenders that will finance new construction.
Andrew
Like being said above, private lending institutions are always willing to lend on projects that have potential. As long as the numbers make sense, you should be able to find financing through hard/private lenders. I have a few contacts so don't hesitate to reach out!
Yes, many private lenders give new construction loans. You'll probably need 15%-30% depending on the deal plus closing costs.
- 580-297-8915
- https://www.rbiprivatelending.com/rental-loan
Yes, it possible. However, the question is where will you find such lenders? Perhaps you should check the lender section on Bigger Pockets.
I will also say you should shop around for some mortgage brokers in your locality. Unlike banks, mortgage brokers are able to shop multiple lenders/banks and get many bids for your loan for you to compare.
I will say you should consider looking at those two options first. Also if they are privately lending you the money, consider not just the loan cost to obtain but also the conditions