Updated about 9 years ago on . Most recent reply
Private lending advice
Hello all, I am new to real estate investing and have a wholesale property I have an accepted verbal offer on. I am looking to use a private/hard money lender. My plan was to purchase the property 100% with the private lender's funds under my LLC as an investment property. Then after 6 months draw out the 70% ARV to pay him off and have more of a conventional mortgage. However, in doing my due diligence I have went to numerous banks and credit unions and they will not give a loan out on this type of deal. I am told since it is an investment property and I do not have at least a 25% equity position they cannot give a cash out equity option.
Does anybody have any insight or has done something similar? How are people buying properties through private lenders?
Thanks for any help!