Where can I find Hard money lenders?

Question

I want to start flipping single family homes but I’m not sure of what all I need in order to get approved for a loan . Any feedback will be helpful! Thank you BP!

Glidden Rivera · Answer

@Selena Harrison

You need an LLC or other structure

Complete with EIN and articles of incorporation

A decent credit score( not to qualify but to get better rate. Though you can still borrow with sub par credit)

Bank statement ( 1 month or two)

Must have house under contract in the name of the entity

The loan is based upon the asset. Generally,

Hard money lender will loan in the after repaired value ( ARV) some lenders will go  up 75 % of the ARV  90% on the acquisition and100% on the rehab.

Ex: purchase price is 80k

Rehab is 35k

ARV is 190k (190x.75= 142500.00 max loan amount possible)

2-4 points

You need 8k for purchase

Plus $2-4K lender fee

Plus any other fees $1-2

You will need roughly 14k to close the

107k loan ( loan in acquisition: 72k loan on rehab 35k)

Interest only payment of ( 801.00/ month) or can opt for no payments for 6 months

Jon Schoeller · Answer

Hello Selena! Hard money lenders are everywhere. There is even a bunch on here. I would star with the ones on here and then move onto a Google search in your area. Good luck!

Jay Hinrichs · Answer

just be aware that HML / private money lenders are infested with fake lenders.

so some red flags to look our for.

1. bad English

2. rates too good to be true for a beginner any rate under 10% is going to be a red flag.

3. approve you too fast and with minimal data

4. wanting you to send 500 to 1500 up front to pay to draw docs or some other BS fee.

5. buying default insurance.. this does not exist in the HML or private money lending world  its a total scam

in your area Lima one  Lending Home  Lending ONe are all semi national lenders that are for real.

Steve K. · Answer

ignore all the offers in your inbox since you made the OP

Where can I find Hard money lenders?

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