Asset based financing/ private lenders in Ohio

8 Replies

Hello fellow BP members! Question, I am interested in starting investing in real estate again, but need some advice. I have been viewing numerous bank owned properties in Springfield, OH under 20K most need around 10-15K in rehab cost. ARV average is 50-60K. Seeking an investor who will finance the purchase price and rehab cost, essentially 100% financing short term based on the asset value. Is there any lenders/private investors that finance in OH?

This post has been removed.

Hi, Account Closed and glad you're getting back in to investing. Here in Columbus we know of Autumnwood Funding and ReCasa Financial who are hard money lenders lending on fix and flips. None of our investor clients have used them yet but we have had sit-downs with each company. Good luck!

I think almost all investors, including myself, would be reluctant to loan 100% where you have zero "skin in the game".

If you can't save a few thousand dollars to invest then you're probably not ready to jump in yet.

Also, what is your plan to cash them out? Even a refi will require 20% LTC within a year or 2 of purchase. 

@John Horner , I think you'd be surprised. I have found multiple private investors who will do 100% financing. It takes some work to find people who know you and who are willing to do that loan, but it can certainly be done. You're absolutely right that you won't find hard money lenders to do those terms, but private investors sometimes will.

Account Closed, start talking within your personal network to see who might be willing to loan money that is secured by real estate. Familiarize yourself with SEC rules about securing private lending. I'm not an attorney, and I don't play one on TV.

Originally posted by @Corey Liepelt :

@John Horner, I think you'd be surprised. I have found multiple private investors who will do 100% financing. It takes some work to find people who know you and who are willing to do that loan, but it can certainly be done. You're absolutely right that you won't find hard money lenders to do those terms, but private investors sometimes will.

Account Closed, start talking within your personal network to see who might be willing to loan money that is secured by real estate. Familiarize yourself with SEC rules about securing private lending. I'm not an attorney, and I don't play one on TV.

Corey, I know we wouldn't have an issue with this at this point in our careers. For me anyway that was after doing other projects with those lenders to build our relationship and trust over time. Also were talking about a South Linden type area if he's talking about picking up properties for $20k on the mls and an ARV of $50k... Not a whole lot of upside there. Also if he has nothing to put down, and he's not flipping, then where will the cash come from to reif?

All very good points, John. I got so focused on the mechanics of private lending that I wasn't paying attention to the deal specifics.

Any good rental type lenders in central Ohio?

 

Specifically ones that will lend on cheaper ($30k-$70k) properties? Been spinning my tires a bit with local banks. Seems everyone wants to lend on one or two a year and no more. 

A few things, first institutional hard money guys will rarely go down to those numbers and when they do its short term and high fees.

Second, private lenders very well may do that kinda thing.  Mine does, but I've cultivated that relationship over years.  You will not find someone on the internet to loan you 100% on anything.  That is almost always going to be a relationship type of loan.   If you've got stellar credit and great income you could get it on a signature/card from the institutional guys, but thats only possible for a select few.  Try starting with family members and friends, and you're probably looking more for a money partner than a lender at your current level.

Brandon, you are looking at portfolio lenders in that price range.  Try small local banks with just a few branches.  Pretty hard to do much borrowing under $50k these days on 30 yr fixed.  Should be able to find one to do the loan on a 30 year am with a balloon.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here