Evansville, IN · Member since 2017 · 20 posts · 1 vote
Hey everyone! I have a great deal but can’t get the money! A couple of my private investors bailed. Mainly for “moving too quick.” I firmly believe in this deal but if they’re out I need to go a more traditional route. I have a meeting tomorrow with a bank because the one I used before is a community bank but out of state and they want to keep those transactions at a minimum. Hard money lenders won’t go low enough for the amount I need (65k total for purchase of 35 and rehab) or want 15k in liquid assets! Any advice is appreciated!
Thanks,
Mitchell
Highland, NY · Member since 2013 · 169 posts · 130 votes
8y
Can you post the numbers for the deal? That will help us better understand why your investors are bailing.
On the surface, it seems like the deal is too small and your investors don’t want to tie up a portion of their capital.
Highland, NY · Member since 2013 · 169 posts · 130 votes
8y
Can you post the numbers for the deal? That will help us better understand why your investors are bailing.
On the surface, it seems like the deal is too small and your investors don’t want to tie up a portion of their capital.
Evansville, IN · Member since 2017 · 20 posts · 1 vote
8y
Well the first one thought the rehab would end up going over what’s expected. The next one was in but his wife wanted him to slow down. And my others also just didn’t want to make a quick decision.
35k purchase price
20-30 in rehab
Will rent for 1k-1200 a month
ARV is 100k
Investor / Lender · Seattle, WA · Member since 2014 · 1k+ posts · 730 votes
8y
Sounds like a pretty good deal. How confident are you that you'll be able to refinance within a year? Have you gone to a conventional bank for them to review your financials to pre-approve you? I'd do that first before even buying this deal or talking to private/hard money lenders.
Are you looking for 100% financing? That's pretty tough. You mentioned not having $15k, but how much do you have to put towards the deal? Lenders tend to get real iffy about borrowers not having any skin in the game.
Evansville, IN · Member since 2017 · 20 posts · 1 vote
8y
I have an appointment with a local bank tomorrow that will hopefully work out but am trying to explore all my options.
I have someone who will personally lend me the money for the down payment. I have some money myself but am trying to keep it at a minimum to keep me in a safe spot personally and work on my current flip.
Rental Property Investor · DFW, TX · Member since 2013 · 953 posts · 910 votes
8y
A portfolio lender is your best bet. These are local banks that keep their own loans (don't sell them to the secondary market). Do a google search in your area and just call some smaller banks that maybe only have 1-5 branches and ask for a loan officer. Ask if they do construction loans (its a commercial loan). This will be what you are looking for because it will be based on the appraisal. You will need 20% or more down though. But as Nghi Le said, if you're trying to do 0 down they won't do that. Private money will be your only option and you'll pay a premium for that.
If you are having a hard time ask a mortgage broker or real estate agent. They can usually point you in the right direction.