Needing to know more about hard money/private lending

Needing to know more about hard money/private lending

Oologah, OK · Member since 2016 · 24 posts · 2 votes

Hey guys! So I'm working on my business plan of single family rental properties with the occasional flip( 1-3 flips a year) and I'm trying to figure out the best way to do 100 percent financing. I've done quite a bit of research on private investing/hard money, and I'm thinking about starting out with hard money and ending with a bank loan after a year. Does this sound like a good plan? 

Also I really don't know how to get in contact with any local hard money lenders in the Tulsa Oklahoma area. Does anyone have any suggestions on that? 

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Investor · Cincinnati, OH · Member since 2016 · 249 posts · 36 votes
10y

Hey @Joe Crabb,

I'm not sure what you mean when you say "100% financing". 

There are Lenders who will fund up to 100% of the Rehab amount (depending on the as-is value of the property), but for 100% financing of the entire project, I'm not too sure if that will be an easily achievable option. 

The highest LTV (Loan To Value ratio) we typically see is 80% - 90% of the Purchase Price and up to 100% of the Rehab, as I mentioned. Many Lenders that offer 100% Financing are less than scrupulous, and this commonly considered a red flag if you see it offered.

One thing you might consider: seeking an equity Investor interested in going in on a Joint Venture type of deal. This is obviously easier said than done, but an available option none-the-less. 

Feel free to reach me directly if you have any more questions.

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  • Claremore, OK · Member since 2015 · 15 posts · 1 vote
    10y

    Go to the Marketplace on the tab bar at the top of the page >> Click on Hard Money Lenders >>> Click on Oklahoma (it doesn't show a yellow marker but if you click on it, 2 businesses will pull up) >>>> Visit their websites and find contact info. Call them and question them on everything.

    P.S. - I will be attending Than Merril's Real Estate Seminar for flipping houses in Tulsa on Saturday, June 11. Sign up and attend to network with other people. Click the link below.

    http://event.fortunebuilders.com/class/?Contact0State=OK&utm_term=TULSA/MUSKOGEE&utm_content=V1&utm_source=DTM-Banner&utm_medium=DTM-LinkedIn&utm_campaign=DTM-LinkedIn&Contact0Area=TULSA/MUSKOGEE&CLICKID=8d8b635c-4526-e611-93f9-a0369f1303c6#area-select-container

  • Oologah, OK · Member since 2016 · 24 posts · 2 votes
    10y

    Thank you Connor! 

  • Oologah, OK · Member since 2016 · 24 posts · 2 votes
    10y

    Thank you Connor! 

  • Investor · Cincinnati, OH · Member since 2016 · 249 posts · 36 votes
    10y

    Hey @Joe Crabb,

    I'm not sure what you mean when you say "100% financing". 

    There are Lenders who will fund up to 100% of the Rehab amount (depending on the as-is value of the property), but for 100% financing of the entire project, I'm not too sure if that will be an easily achievable option. 

    The highest LTV (Loan To Value ratio) we typically see is 80% - 90% of the Purchase Price and up to 100% of the Rehab, as I mentioned. Many Lenders that offer 100% Financing are less than scrupulous, and this commonly considered a red flag if you see it offered.

    One thing you might consider: seeking an equity Investor interested in going in on a Joint Venture type of deal. This is obviously easier said than done, but an available option none-the-less. 

    Feel free to reach me directly if you have any more questions.

  • Oologah, OK · Member since 2016 · 24 posts · 2 votes
    10y

    @James McAlister thank you for the information, please excuse my ignorance on the subject as I am new to the industry. 

    What is a good way to find out if the lender is legit or not? 

  • Investor · Cincinnati, OH · Member since 2016 · 249 posts · 36 votes
    10y

    @Joe Crabb,

    I've actually written a  on this exact thing. 

    http://glassridge.com/2015/06/08/6-red-flags-to-look-for-with-hard-money-lenders/

    I hope it helps a bit, and as always, feel free to contact me directly if you would like any more specific details or have any questions.

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