Needing to know more about hard money/private lending

[Joe Crabb]

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? 

[James McAlister]

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.