Finding private aka hard money lenders

9 Replies

I’m about to close on my first deal - a duplex house hack - and already found a solid second deal, but don’t have 20% to put down as an investment property. Thinking a hard money loan to cover the downpayment and reno costs combined with a commercial investment property mortgage might work though. One problem, how do I find a hard money lender to work with?? Anybody else found themselves in my position when you were starting out? How did you work it out? Thanks in advance!

I will be very honest with you that it will be very difficult to find a private/hard money lender for down payment, because that will put the private lender as 2nd position (because the commercial mortgage  will take 1st position). And many commercial banks would not accept your down payment is from a loan. Thanks. 

Originally posted by @Roman M. :

Not possible. 100% financing is long gone.

I don't believe that 100% financing is long gone. I have private/hard money lenders that will fund a deal 100% if it places under the 65% ARV value. The only costs to me is survey/appraisal and some will use there own people for that.

I have hard money that will do 75% of the purchase and also cover the rehab if the seller will carry back 25%. I also have GAP funders who will fund the down payment and closing cost money as a 2nd. It all depends on the state where the property is? If my lenders wont work (due to the state) I would talk with other hard money lenders in your area to see if a seller carry back will work for them? Or seek out a GAP funder?

I hope this helps?

@Kevin Romines thanks for the idea about the carry back. I’ll look into that. We’re checking into lake houses in NH and ME. The boom in Boston has helped secondary markets like vacation rentals but there are still fixer upper lake houses waiting to be turned over.

@Jeremy Holcomb thanks for the info. I'm talking to a couple owners about seller financing but have not approached any hard money lenders yet about 100% financing. There are deals to be had but the high interest rates make me a little nervous about carrying costs during the rehab. I work full time so the length of the rehab is a big unknown. I'm targeting BRRRR deals and BRRRR vacation/Airbnb places mostly.

@Nate Ginsberg , There are definitely sellers who will carry the mortgage. I bought one today and he carried a 100% mortgage. Just had to send first payment of $185. So good luck and just remember that just searching for the deals can sometimes place someone in your path that will either loan you the money or provide a seller carry note. 

You can get 100% financed Hard money with rehab $ if your getting a good enough deal. Does Mass have a registry review type newspaper that lists recent sales? In NH they list lenders, you might find out you already know someone who lends.