I have a meeting to put two homes under contract for 45K. I plan to get funding from a hard money lender. The neighborhood is in the lower end of the city but there are properties that have been bought and rehabbed and seem to be functioning as rentals. I plan to do the same. However, my question is
What other exits strategies are available once you’re under contract with the HM lender?
(please forgive me if this post has been answered)
If you are interested in potentially wholesaling one or both of the properties just wait a week to lock down the loan with the HML and get them listed on craigslist and out to any other investors you know to try and get them assigned quickly.
If that doesn't work and you do want to keep them, then engage the HML
You should only consider using hard money lenders after you have experience with a few deals. Hard money gets very expensive quickly and if you get into any serious delays with your project, it could quickly eat up all your profits.
There are countless items about HMLs throughout BP and of course, the dedicated forum for all kinds of creative deal financing.
Good luck with your deals!
For holding depending on LTV say 80 get a private 1st mortgage 6 %
For selling exit list it at 95% of comps w a killer agent w 4 % selling commission if at certain price threshold
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