I'm looking to use hard money on a deal or two, but seems like some give you a minimum they will loan and most of the ones i find are under.
I've always used traditional banks but to many boxes to check and the time it takes is definitely an issue for getting the good deals.
I'm needing referrals for hard money lenders .
I'm wanting to invest from Tulsa to OKC, OK area.
Any help is appreciated..
You'll find many hard money lenders won't go below 75k or 50k. What sort price points do you go after and what loan amounts do you need?
With HML you may have the opportunity to finance repairs as well as purchase which can help get the loan amount up.
Most loans regardless of if they are 25k or 250k are the same amount of work for lenders, and it just is not worth their time to do lower loans. It is also costly to foreclose on a property, and low loan amounts don't make enough money to be worth the risk/cost of having to take back a property.
For lower priced properties looking for a good line of credit may be the best option.
Flipper/Rehabber · Sapulpa, OK · Member since 2018 · 9 posts · 2 votes
7y
@Guy Yoes
We have our home debt free due to hard work and building a few homes and living in them 2 yrs before we sold them, but we really are trying to keep our personal home out of it.
I know this will make it a slower process.
We are in process to refinance our rent house.
Trying the BRRRR method and use equity to have the down payment for the next..
I might would be willing to risk our home but my business partner (my lovely wife) is not.
I understand. We had our house paid off and used a HElOC to purchase our first rental. The rate was higher than a loan but no closing costs as we paid cash. We also acted as our own agent (we are not RE agents) and negotiated the contract ourselves. We had saved saved 10K and took out a HELOC for 90K. We paid off the house in three years using the rent, our former mortgage payments and any extra cash we had. After three years we repeated with a 80K foreclosure paying two rents, previous mortgage and extra cash. Paid off in two years.
This works for us. My wife was hesitant to go along with this, but we ran the numbers and the hassle of getting a loan made this a better process for us.
I hope you have better luck with the refi on the rental than we did. Our bank is not to keen on rental loans but fell over themselves in getting us a great rate for the HELOC.
While you can no longer take interest for you home loan off your taxes, you can deduct if the loan is for a rental ( same as a refi).
Is this for a rental or a flip? HML's are going to ask for about 9-11% and they want longer terms usually.
We looked into lending early in our REI journey. It was hard to find the right fit we were comfortable with. We ended up going with first position notes ( 5 year term @ 9%).