Private Money Lenders For Buy & Holders (Cleveland Ohio Based)

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Private Money Lenders For Buy & Holders (Cleveland Ohio Based)

Sawyer Dina
Flipper/Rehabber · Cleveland, OH · Member since 2016 · 33 posts · 17 votes

Hey BP Community,

I am just getting started in the RE investing world and my current & prospective strategy is to buy & hold properties for cash flow. I have found several private lenders who specialize in short-term (fix & flip) loans but have struggled to find private lenders who do longer term loans for those who like to buy & hold. Any suggestions here?

Thanks,

Sawyer

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  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    9y

    Private lenders/hard money lenders charge higher interest with shorter terms than institutional lender. The result is that unless a very large down payment is made, or the property is somehow purchased for significantly below REAL value, there will be a negative cash flow.  Private lenders know that a negative cash flow situation is not sustainable long or even intermediate term.

    Private Mortgage Financing Partners, LLC
    WebsiteView Page
    1Reply
  • Sawyer Dina
    OP
    Flipper/Rehabber · Cleveland, OH · Member since 2016 · 33 posts · 17 votes
    9y

    Hey Don, thanks for your reply!

    I see, that tends to make sense, although very unfortunate in my situation and interest. With that said, do you know of any creative solutions to myself getting into buy & hold investing with non-traditional financing?

    What is the longest term a private lender will offer? I can always refinance.

    Let me know!

    0Reply
  • Ham Merritt
    Co-Owner · New Berlin, WI · Member since 2017 · 224 posts · 71 votes
    9y
    @Sawyer Dina what is the motive behind using private money?
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  • Sawyer Dina
    OP
    Flipper/Rehabber · Cleveland, OH · Member since 2016 · 33 posts · 17 votes
    9y

    Conventional financing is too stringent and will not approve me for my next purchase so I need to use private money. I have excellent credit, yet I'm 23 and the income just isn't consistent enough as I'm just getting starting in the world. I have already been approved and bought my first house, yet I don't see any bank allowing me to go ahead and buy another this soon after my first one.

    Any options for someone like me?

    0Reply
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