A friend would like me to be his partner in flipping several houses but his credit is not so good (and is self employed). I will do all the rehabbing. He has a paid off personal residence worth about $80k and I have been paying myself through a S Corp $4k/month for the last 3 months. Prior to me being self employed I worked for a different employer, having made a little over 50k in 2016 and about 30k in 2017 ( my current credit is fair). We are wondering if anyone knows of a lender who can provide a HELOC for our given situation (to have the funds for the down payment on 3 Hard Money Loans). For the HELOC we are open to Hard Money Lenders as well. Any help or guidance would be highly appreciated.
Sorry to be the bearer of bad news, but hard money lenders don't really do HELOCs. They also won't fund anything owner-occupied. So you'll have to either get a conventional loan or HELOC on that personal residence or move out of it so you can open doors to non-owner-occupied lenders. Or somehow find private money who might want to put a lien on the primary residence.
Thank you for the input. Conventional loans might not be the best bet.. I need something like a Portfolio Home Loan. From an investor standpoint, I can't believe there isn't a market for non conventional Residential HELOC's or Home Loans that are owner occupied. Someone could be providing 50-60% LTV of property (obviously only target specific areas or hot markets) and charge 10-12%. There is such a high demand for this type of loan and no supply.
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