I just found a partner to fund fix and flips with me. The problem is we don't have quite enough capital to do everything we want but we'd like to deal with off-market properties. How do we get a private loan with a reasonable interest rate that would be able to get us cash within a week if need be?
Private money interests rates in CA average 10% to 12% (give or take). You can have fast or you can have cheap, not both (usually).
Expect to pay 2 to 5 points on average.
I'd preserve your capital for down-payment and rehab, and use private/hard money to buy, that way you're not tying up all your funds on one deal. You may find another property you need to put an earnest money deposit on that can't wait.
Just stay away from San bernardino.
Thanks Robert. For private loans, do you have to know someone who knows someone, or are there companies or services accessible to us?
why is San Bernardino a bad investment
It's deceptive for rehabbers. Easy to get cheap deals but difficult to get target arv's. Many hard money investors are starting to stay away or reducing their criteria for the area.
It can get done, though. I guess I shouldn't have said stay away. More like, be very careful. You have to be very selective.
@Casey Luport contact me if you need more specific info. What type of deals are you looking for to finance? What's your exit?
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