Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
12y
OK you want to flip,
Is this hypothetical or is it a deal?
Do you have a contract?
ARV is 65-69,
I would look for no points, 65% ARV for loan from private lender, 12 % a year, but use the money for 3 - 4 months. You sell it.
Or a JV Partner like a Doctor, that puts up 100% of acquisition and rehab, you find it, sign the seller up, supervise the rehab, hire the re sell agent, sell it, split net profits 50 50.
Go to your REIs and say
"I am looking for 2 types of people:
Private lenders, 12 % a year, 65% Loan to Value
JV Partners for 50 50 split, I do all the work, we split the profits.
Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
12y
OK you want to flip,
Is this hypothetical or is it a deal?
Do you have a contract?
ARV is 65-69,
I would look for no points, 65% ARV for loan from private lender, 12 % a year, but use the money for 3 - 4 months. You sell it.
Or a JV Partner like a Doctor, that puts up 100% of acquisition and rehab, you find it, sign the seller up, supervise the rehab, hire the re sell agent, sell it, split net profits 50 50.
Go to your REIs and say
"I am looking for 2 types of people:
Private lenders, 12 % a year, 65% Loan to Value
JV Partners for 50 50 split, I do all the work, we split the profits.
Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes
12y
@Brian Gibbons ... Yes, it's a real deal under contract!! No hypothetical..lol...I did speak with a lender in my group interested in 12% scenario, but only want to do deals $100- $200K... I want to get several done under 100K first.. Seems like first one might be costly...
@Brian Gibbons ... Yes, it's a real deal under contract!! No hypothetical..lol...I did speak with a lender in my group interested in 12% scenario, but only want to do deals $100- $200K... I want to get several done under 100K first.. Seems like first one might be costly...
HMLs are expensive and have minimums and red tape.
You have 4 jobs:
1. Get motivated sellers
2. Get buyers for wholesale deals, get renters, get RTO buyers, get FHA loan candidates.
3. Get PLers and JV Partners
4. Get COIs (people that can refer you business) aka Centers of Influence. This is what RE agents and Insurance Agents do.
Lender · Salt Lake City, UT · Member since 2012 · 714 posts · 169 votes
12y
Every hard money lender has a different set of terms, conditions, process, etc. Knowing when you are dealing with a scam is important. Is this a reputable lender that was referred by someone you know and trust? No money down seems to good to be true.
Investor · Vancouver, British Columbia · Member since 2014 · 36 posts · 8 votes
12y
Originally posted by @Account Closed:
Every hard money lender has a different set of terms, conditions, process, etc. Knowing when you are dealing with a scam is important. Is this a reputable lender that was referred by someone you know and trust? No money down seems to good to be true.
So true and I think no money down or no skin in the game is a little too keen.
Banks are like 2-4 and the hard money I have found can be between 8% to 36%-
Fellow BP, I know this varies by market, but what rates are you paying for HML?
Working some deals...A) Resell deal all in 40K ..ARV $65-$69k
1. Rate 15% with 5 points 65% LTV.. No money out of pocket
2. Lend 25K, I need to bring 15K .. Pay 5K after resell..
I usually buy/ hold or sell owner financing so this will be first "FLIP"
Any input appreciated....
Thx
Rolanda, I recently listened to a podcast by @Dawn Anastasi and she mentioned using Lending Club or Prosper loans. (Thanks Dawn - a great podcast BTW). Probably the best and what I am looking into right now is a heloc on your primary. Best rate I got was 3.25% and you have the option to pay interest only. Good luck to you!
Rolanda, I recently listened to a podcast by @Dawn Anastasi and she mentioned using Lending Club or Prosper loans. (Thanks Dawn - a great podcast BTW).