Any reccomendations for private money that isnt a scam

5 Replies

I have worked out all of the financials to a deal I currently have under contract. Can anyone recommend a private lender that is asset based for 100% finance ? If you think it's impossible no need to reply or say " You need skin in the game." I currently have two lenders at 100% financing with an interest rate at 14% and 4 points. After doing the math the deal is still profitable I would walk away with about $35,452. If you can help that would be great. I am even willing to take 14% and 3 points! I will refinance this 3 family in a couple of months. So I already have my exit strategies. If the breakdown/financials are needed + rehab estimates I can provide that as well!    

stick with lenders that perform there is plenty of juice in the deal to pay them.

private lenders you may find at reia s etc or family and friends.. not generally or at all on the internet that's were you run into the scammers.

Since you already have financing, why are you still looking. Get the deal done, walk away with the 30k. Why is that such a bad deal????

Dont get greedy. After you do a great job at rehabbing and selling this property you now have experience. That is what the lenders want to see. Maybe you will be charged less points or lower interest on the next one. 

About 15 years ago, I was paying 18% and 4 points. I almost threw up because I was so happy that someone was willing to lend me money. After a couple of deals it was 16% and 2 points. Since I was finding crazy good deals I still made plenty of money. These days I have friends and family who put up money from IRAs and from their own pockets at 8-10% and maybe a point. Just so you know, my family would not lend me money until I had been doing this for about 12 years and had done almost 30 rehabs.

You can shop and keep looking for the BEST rates, best deal, best everything. If that is the case, you will never start because there is never the best. Someone always has something a little different or a little better. Get with a hard money lender from your local real estate investor club that you like and who performs for you and go get the deal done.

Things only get better when you have a good reputation. 

@Khari Harper

100% Financing at 14% and 4 pts isn't bad, especially if you're a 1st-time flipper.

For people have who some experience, I've seen as low as 8%, 2 pts, but that's at like 90%-95% LTC.

Just make sure it's truly 100% financing.  Ask how much cash needs to be brought to closing, and how much cash do you need to have in reserves to qualify for the loan.

And if they ask you to pay any money up front for something other than an appraisal ($600 max), run away.

Thank you for the advice! Yeah I was certainly looking to make sure I didn't have to pay anything up front besides appraisal. I found a lender. Just have to pay for appraisal and closing costs at 8.5% & 3 points. I guess I will find out at closing how legit they are. 

Originally posted by @Nghi Le :

@Khari Harper

100% Financing at 14% and 4 pts isn't bad, especially if you're a 1st-time flipper.

For people have who some experience, I've seen as low as 8%, 2 pts, but that's at like 90%-95% LTC.

Just make sure it's truly 100% financing.  Ask how much cash needs to be brought to closing, and how much cash do you need to have in reserves to qualify for the loan.

And if they ask you to pay any money up front for something other than an appraisal ($600 max), run away.

Originally posted by @Khari Harper :
Thank you for the advice! Yeah I was certainly looking to make sure I didn't have to pay anything up front besides appraisal. I found a lender. Just have to pay for appraisal and closing costs at 8.5% & 3 points. I guess I will find out at closing how legit they are. 

Originally posted by @Nghi Le:

@Khari Harper

100% Financing at 14% and 4 pts isn't bad, especially if you're a 1st-time flipper.

For people have who some experience, I've seen as low as 8%, 2 pts, but that's at like 90%-95% LTC.

Just make sure it's truly 100% financing.  Ask how much cash needs to be brought to closing, and how much cash do you need to have in reserves to qualify for the loan.

And if they ask you to pay any money up front for something other than an appraisal ($600 max), run away.

8.5% interest in New Jersey? Please let me know the lender. I haven't seen anyone going that low, so be sure not to pay any big fees up front. Also ask them for two title companies they closed deals with in NJ. Call the title companies to ensure they actually closed.

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