100% Private Money Lenders on Facebook

[Joshua Jones]

So I'm in a ton of Facebook groups for investors and see a number of PMLs advertising 100% financing.

I messaged one to see what the deal was. Basically, he offers 70-90% for purchase (based on experience/credit score) and then up to 75% ARV to cover rehabbing costs.

As I'm new, I would be at 70% and so they now have a Gap Funding program for the remaining 30%.  Sounds too good to be true.

Here are their terms and marketing.  Spoke to him on the phone.  Didn't sound scammy, but who knows.  English was def his second language the face tattoos make you think twice lol.

Their website is junk and built on GoHighLevel (a system I use for my main company).  Looks like something that was thrown together overnight.

[Nick Belsky]

@Joshua Jones

I don't trust any of them on FB.  If it sounds too good to be true, it probably is.  I've already uncovered several lenders that were absolutely not legit or suspicious at the least from FB.  More and more of them are showing up out there.  Be careful who you get in bed with for sure.

Gap/Bridge funding at 2% is not uncommon if in first position.  As a second, or mezz, financing in 2nd+ position, there is no way you'll find that for 2% of origination.  They are usually 4-6% and have rates close to 15%, with default rates easily into the high 20's or low 30's.

IMHO, you're better of trying to get seller financing for a second position.  Several lenders will allow up to 85-90CLTV if using a seller second.  If not, there are few legit 100% financing options I know of.  They are also not cheap, but they will close and not rip you off.  Look to spend around 5% and get 12% interest though.

Cheers!