A contact of mine outside of bigger pockets, states that he has access to a "Fund/Lender" that will allow me to get into a property with only 10% down, they would cover the remaining 90%. After the purchase, they would cover all construction costs with myself overseeing the project. Once the property sells, Profits are split 50/50, and then there would be a 12% return on the initial 10% investment as well. Has anyone heard of a program like this before in private lending? If so, did you take advantage of it and were terms as stated/signed? Thanks for your replies/feedback.
The numbers sounds reasonable for the risk involved tothe lender. They would have to feel completely comfortable with the before and after rehab value of the property and your history of actually doing the necessary work to complete the project as planned and budgeted. If so, I think 10% down is very reasonable for the partnership they are proposing.