Private Lending Questions
I am a new investor in Grand Rapids Michigan and have recently launched a yellow letter campaign that has resulted in me getting two duplexes under contract. I have the credit (740) and cash/w-2 income to do traditional fannie mae 20% down, but wanted to explore the idea of private lenders at this point. I plan to continue buying and know that once I get beyond the fannie mae 4 house limit, it gets more complex for additional properties through them. Figure now is the time to start learning about non-traditional source for financing properties.
I know I have seen people in the past on craigslist advertising 'get secure 6-8 % rate of return backed by real estate' and imagine these were people looking for private money as well. LTV on both should be re-assuring to a private investor I would think: I am getting one duplex for 48k, worth 72k, so about 66% LTV on that one. The other is a 65k duplex, that I will get for 30k, or just under 50% LTV. Both B-/C+ areas in Grand Rapids Michigan. I am looking for longer term financing since I want to hold these properties. Any ideas of where I can look/how to let people know I am in market for this? Will post on CL and mention and REI meetings, but wanted to know how others have done this...
thanks for any and all help!
Mike