Lending suggestions for hard money lending

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Lending suggestions for hard money lending

Layton Martin
Investor · Member since 2024 · 3 posts · 1 vote

New into the real estate game and looking  specific lenders you know of that does hard money lending based off arv instead of luv , would be spectacular if you can as well pm some you would refer thank you :) 

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Mike Klarman
Specialist · NJ · Member since 2022 · 1k+ posts · 653 votes
2y

Everyone lends based on ARV. Your loan will be capped anywhere from 65% ARV to 75% ARV and that will depend on lender, credit, experience, deal spread, risk.

In that deal cap you have guidelines like borrower can get 80% LTV is their experience is X and credit is Y, and they can get 90% LTV if their credit is A and exp is B. You'll get the best deal you can get without going over the cap.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Layton Martin

    Gonna be crickets on this one. They may take arv into consideration but also take ltv as what if you don’t finish project ?

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  • Layton Martin
    OP
    Investor · Member since 2024 · 3 posts · 1 vote
    2y
    Quote from @Chris Seveney:

    @Layton Martin

    Gonna be crickets on this one. They may take arv into consideration but also take ltv as what if you don’t finish project ?


    Haha Facts I know the volume gone be low on this haha just hoping for one good source I know there’s limited lenders testing my luck 😂

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  • Stacy Patel
    Lender · FL · Member since 2024 · 34 posts · 10 votes
    2y

    Hi Layton,

    Welcome to the real estate world!  

    Start by reaching out to local hard money lenders in your area. They often have more flexible terms and can work with ARV instead of LTV. Local real estate investment groups or meetups can be a good resource for recommendations.

    If you need specific lender referrals or have any other questions, feel free to PM me. Best of luck with your investments!

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  • Mike Klarman
    Specialist · NJ · Member since 2022 · 1k+ posts · 653 votes
    2y

    Everyone lends based on ARV. Your loan will be capped anywhere from 65% ARV to 75% ARV and that will depend on lender, credit, experience, deal spread, risk.

    In that deal cap you have guidelines like borrower can get 80% LTV is their experience is X and credit is Y, and they can get 90% LTV if their credit is A and exp is B. You'll get the best deal you can get without going over the cap.

    1Reply
  • Kristie Laufer
    Member since 2024 · 37 posts · 4 votes
    2y

    Hi Layton!

    Welcome to the real estate game! It's great to see new investors like yourself diving in. When it comes to hard money lending based on ARV (After Repair Value), there are definitely some great options out there.

    If you have any questions, feel free to PM me. I'd be happy to connect with you.

    Best of luck with your investments!

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  • Deborah Wodell
    Lender · Sanford, NC · Member since 2024 · 351 posts · 117 votes
    2y

    Hey @Layton Martin

    Most lenders lend based on ARV and it also depends on the deal as well as your credit & experience as to what rates and terms you'll be getting.Do you already have a specific property in mind? If you have, you can get a better picture of what to expect by having it quoted from different lenders.

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