Quick question on lending

9 Replies

Hello everyone! I'm a new investor and I was trying to find out how do I get private money lending when I have no experience on flipping properties. I have everything to qualify for the lending but since I'm a newbie I have no experience! Anyone in the Phoenix area with the experience that would love to team up and JV

Good timing @Andrew Schuster ! AZREIA is having a class on attracting private money. Might give you some good background. It’s on 10/2 from 6-8 pm. Go to AZREIA.org to learn more.

See you there!

Melanie  

You don't necessarily need private money, you just need money that fits what you are trying to do. If you are wanting a fix n flip loan for the purchase and rehab money, then just get with a lender that can do that and has investors that allow that for a person with no experience. I know of many investors that allow that. The LTV tends to be a bit more restricted or limited than someone with experience. Also the interest rate tends to be a little higher, but we all start somewhere. It just a matter of getting the deal done with as good of terms as you can get?

I know of a few lenders that will loan 85% of purchase price and 85% of rehab not to exceed 70% of ARV. They'll lend to newbies as long as the deal makes sense, the points may just go from 1 to 1.5 or 2, depending on what reserves you have, etc. Usually this is 10-14%