Hard money loans with no money down?

11 Replies

Hi guys. I’m a Newby and was wondering if anyone has gotten hard money loans with no money down? I’m looking into how to get my first flip going but don’t have the funds it seems I will need. Any advice would be greatly appreciated.

I am not saying they don't exist but I have never heard of any HML that doesn't want you to have some skin in the game. Maybe some others can chime in they have had better luck.

@Jesse Littrell

Hey Jesse,

It’s a valid question - there are offers I have seen lenders make that would allow you to obtain a hard money loan with ‘no money down’, but there are draw-backs.

Here are the two that I have seen in the market;

1. 100% LTC (Loan-to-Cost) up to around 65% of ARV - the key here would be finding a property that is this good of a deal. Your project costs, namely the purchase price + rehab cost, would need to not exceed more than 65% of the after-repair value of the property. It is unusual to find a deal like this. Most investors who think that they have a deal like this end up being disappointed once an appraisal is done on the property, and the true after-repair value is uncovered.

2. An option structure whereby the lender sets up an entity which takes control of the property in order to facilitate 100% financing, and you make option payments to the entity.

Remember that you will still be responsible for interest payments on the loan (or option payments in the 2nd scenario), and so even though both of these structures theoretically offer ‘100% financing’, in practicality, neither will allow you to achieve exactly what it is that you’re looking for.

An alternative way to structure something with very little money down would be to have a lender in the 1st position, and seller financing in the 2nd position. However, be sure that whichever lender you end up working with is okay with this structure beforehand.

Hope this helps,


for very experienced flippers these exist.. for some one new to it.. generally No  not possible.

Hey jesse littrel as a new investor myself Ive found one thing to be true. Once you find a good deal where the numbers work, finding someone to believe you and your project to help fund will be kind of easy IMO of course ask everyone co-workers,family,church members whomever you can put together a good easy to understand paper and start handing em out as well. if your here in the forums your off to one hell of a start goodluck