Hard Money Lenders with 100% Financing

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Hard Money Lenders with 100% Financing

Vancouver, British Columbia · Member since 2019 · 72 posts · 30 votes

I am wondering is there any hard money lenders that can provide 100% financing on investment property and also provide rehab loan for short time period?. As I don't have large down payment, I am thinking to start building a portfolio with finding off market deals that have equity and do bit rehab/renovate and later get refinanace to pay off HML with a traditional lender/DSCR loan. please share any thoughts on my plan and any lending resources.

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Ryan Stuckey

Lender · Member since 2022 · 217 posts · 149 votes

Longhorn Investments offers 100% purchase and rehab financing (total loan amount up to 75% ARV) and has been doing so on this model for years. No experience required and 5-7 day close. Yes, this exists and credit/liquidity requirements are not onerous.

Many satisfied customers over the years and now open in select metro areas in 10 states: TX, NM, AR, MO, IN, OH, NC, GA, TN, AL

We are happy to assist with questions or inquiries.

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Greg Downey
Lender · Springfield, MO · Member since 2015 · 379 posts · 180 votes
2y
We have a few of these programs on our platform BUT my first question to borrowers who are seeking this is: what experience do you have? immediately followed by: Do you have any liquidity?
I have not really seen any of the 100% lenders want to work with anyone that have very low experience and no money. Lending is all about risk mitigation. 100% LTC is risky enough, experience and liquidity in your bank account are the mitigators.
Some would argue that the ARV makes it not risky. Experience is the best indicator that an investor will take the project to the ARV.
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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
2y
Quote from @Havan Surat:

I am wondering is there any hard money lenders that can provide 100% financing on investment property and also provide rehab loan for short time period?. As I don't have large down payment, I am thinking to start building a portfolio with finding off market deals that have equity and do bit rehab/renovate and later get refinanace to pay off HML with a traditional lender/DSCR loan. please share any thoughts on my plan and any lending resources.

Hey Havan,
It sounds like this would be your first rehab project. If that is the case, many lenders will require for you to have some skin in the game.
You might expect, 70-75% LTV on the purchase and 100% of the rehab financed.
Once you have a few rehab projects under your belt, you can obtain 100% if the deal is very good.
You might be better off flipping the contract if you find deals frequently but do not have the capital.
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Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
2y
Quote from @Havan Surat:

I am wondering is there any hard money lenders that can provide 100% financing on investment property and also provide rehab loan for short time period?. As I don't have large down payment, I am thinking to start building a portfolio with finding off market deals that have equity and do bit rehab/renovate and later get refinanace to pay off HML with a traditional lender/DSCR loan. please share any thoughts on my plan and any lending resources.
NO you are not getting 100% as you have no experience, Even with experience you are not getting 100%
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Tom S.
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
2y
@Havan Surat As others mentioned, very tough to get 100% financing. Also remember even with a high amount of financing, the lender will want to see you have reserves to cover the project in case it goes over budget.
You'll also need to "front" the initial work, and then you'll get reimbursed under the draw schedule of the loan. The initial work can easily be $10-20K + before you get any money back. And of course there's the standard closing costs of the loan, initial insurance payments, permits etc. So be sure to factor all that in.
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Account Closed
Denver, CO · Member since 2018 · 133 posts · 97 votes
2y
@Havan Surat

Thank you for your question. I see a lot of investors asking this question. After all who doesn't want 100% financing?

Short (practical) answer: No.

Long answer: You could, but you will need some unusually great compensating factors. For example, I know a couple lenders who will go up to 100% for experienced investors who are getting properties far under market value. Or if the investor can put up more collateral.

This question is like asking if you can get into Harvard with a 3.0 GPA. Maybe you can if you already have a perfect SAT, make a large donation to the school, and have a personal relationship with the head of admissions.

3 Reply
Ryan Stuckey
Lender · Member since 2022 · 217 posts · 149 votes
2y
Longhorn Investments offers 100% purchase and rehab financing (total loan amount up to 75% ARV) and has been doing so on this model for years. No experience required and 5-7 day close. Yes, this exists and credit/liquidity requirements are not onerous.
Many satisfied customers over the years and now open in select metro areas in 10 states: TX, NM, AR, MO, IN, OH, NC, GA, TN, AL
We are happy to assist with questions or inquiries.
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Havan SuratPro Member
OP
Vancouver, British Columbia · Member since 2019 · 72 posts · 30 votes
2y
Thanks Ryan. what is your website address? and any contact info.
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Ryan Stuckey
Lender · Member since 2022 · 217 posts · 149 votes
2y
Quote from @Havan Surat:

Thanks Ryan. what is your website address? and any contact info.

I'm not allowed to self-promote here. Our website can be found easily with a search.
1 Reply
Ryan Davies
Investor · Salt Lake City, UT · Member since 2019 · 339 posts · 126 votes
2y
- It would not be a smart decision for anyone to loan 100%. Most require skin in the game on deals and work like this:
- Rates: 10% to 14% (Most Deals are 12%)
- Terms: 1 Day - 24 Months (Most Deals are 6 months)
- Fees: 2-5 points(%) of loan amount paid at closing (Most Deals are 3 points(%))
- Minimum Loan Amount: $50,000
- Max Loan: 65-70% of After Repair Value(ARV)
- 100% Rehab Financing Available (Most Deals require 20% of purchase price down payment or cross-collateral)
- Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 10 business days)
- NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.
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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
2y
Build a portfolio via serial house hacking
Do not build a portfolio via 100% leverage
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Havan SuratPro Member
OP
Vancouver, British Columbia · Member since 2019 · 72 posts · 30 votes
2y
@ Nicholas, I cannot house hack as I am investing out-of-state, but thanks for your suggestion risk with 100% leverage
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Scott TrenchPro Member
Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
2y
Quote from @Ryan Stuckey:

Longhorn Investments offers 100% purchase and rehab financing (total loan amount up to 75% ARV) and has been doing so on this model for years. No experience required and 5-7 day close. Yes, this exists and credit/liquidity requirements are not onerous.
Many satisfied customers over the years and now open in select metro areas in 10 states: TX, NM, AR, MO, IN, OH, NC, GA, TN, AL
We are happy to assist with questions or inquiries.

Implicit in this response is the assumption that the deal is so, SO good, that you can buy it SO LOW, that with 100% financing at acquisition AND rehab, you still come in at 75% to the ARV.
Good for your borrowers who meet that standard. Those are home runs. Maybe we can feature a few of those projects in the success stories forum?
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Ryan Stuckey
Lender · Member since 2022 · 217 posts · 149 votes
2y
Quote from @Scott Trench:

Quote from @Ryan Stuckey:

Longhorn Investments offers 100% purchase and rehab financing (total loan amount up to 75% ARV) and has been doing so on this model for years. No experience required and 5-7 day close. Yes, this exists and credit/liquidity requirements are not onerous.
Many satisfied customers over the years and now open in select metro areas in 10 states: TX, NM, AR, MO, IN, OH, NC, GA, TN, AL
We are happy to assist with questions or inquiries.

Implicit in this response is the assumption that the deal is so, SO good, that you can buy it SO LOW, that with 100% financing at acquisition AND rehab, you still come in at 75% to the ARV.
Good for your borrowers who meet that standard. Those are home runs. Maybe we can feature a few of those projects in the success stories forum?
Hi Scott. I can put you in touch with management in the home office for featuring that kind of success story as described. Just let me know.

These are not necessarily home run projects. Most are routine purchase and rehab projects with enough profit to support the loan amount at 100% LTC, e.g. 100k purchase, 20k rehab, 160k ARV, per lender underwriting standards.
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Jonathan Taylor
Lender · Los Angeles, CA · Member since 2017 · 916 posts · 647 votes
2y
@Havan Surat lots of great info in this thread but @Greg Downey nailed it. There is too much risk for a lender to lend to a new investor with no liquidity/no experience for them to justify 100% LTC.
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Julien J.
Investor · CO · Member since 2016 · 757 posts · 1k+ votes
2y
@Havan Surat
Lots of great information in prior post. Given your situation, it will be difficult to find a hard money lender to fund 100% without having any experience.
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Xavier Randall
Insurance Agent · Lakewood, CA · Member since 2013 · 171 posts · 98 votes
2y
@Havan Surat...I see a lot of opinions in here and they all have solid points! I live in CA but have done several out of state fix & flips. The first big check box is finding that property sweet spot. It needs to be in a rentable or flippable area. Then it needs to a light to medium rehab which allows for a fast rehab process. DON'T GET STUCK WITH A LENGTHY REHAB JOB! Next, be sure you have your crew on deck to get the work started and done IMMEDIATELY so you can get your rehab funds out timely and not have a lot of draw fees. Most importantly, have your exit loan strategy ready on deck just in case you don't flip it in time and need to refi out. DESPITE ALL THE INFORMATION YOU'RE GETTING HERE...THE 1 TRUE CONSTANT IN REAL ESTATE IS THAT "IT'S ALL ABOUT THE NUMBERS". If you get the 100% financing...make it work! Good luck!
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Richard Vanhorne
Member since 2024 · 1 post · 0 votes
2y
Quote from @Havan Surat:

I am wondering is there any hard money lenders that can provide 100% financing on investment property and also provide rehab loan for short time period?. As I don't have large down payment, I am thinking to start building a portfolio with finding off market deals that have equity and do bit rehab/renovate and later get refinanace to pay off HML with a traditional lender/DSCR loan. please share any thoughts on my plan and any lending resources.

0 Reply
Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
@Havan Surat
Tons of scammers on Facebook who will do 100% financing - what they will do is take your money and not lend to you so it’s 100% financing but in the reverse as you are financing their scams
Outside of that - it doesn’t exist
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