I’m wondering if anybody could point me in the direction of a hard money lender that lends to new investors my first deal would ideally be around 50k or less in Texas. I have money set to the side that was going to be for the down payment but since the covid19 has caused banks to tighten their lending criteria, now I’m looking towards Hard Money to acquire and renovate, then refinance in 6 months to a conventional mortgage? Stability of income is not an issue seeing as that I’m military just ready to get started with my investment goals. Any info is greatly appreciated,
Because the property is distressed currently and it is a REO. A lender I talked to wants a 700 credit score with 20 % down which the payment is no problem the credit score is seeing as I'm shy by 30 points
New to Real Estate · Garden Grove, CA · Member since 2020 · 64 posts · 56 votes
6y
You mentioned that you are 30 points shy of the credit score needed, are you in a major hurry to move on a property? If not there are legit programs out there that can help you raise your credit score significantly within a couple of months. If that's the route you want to go. An extra 30 points is not that hard to get to if you are patient and make some adjustments.
I’m at the point of analysis paralysis, making a move on a property is just the next step in the path. I’m working on the credit as I come up with creative ways to acquire a property.
Rental Property Investor · Springfield, MO · Member since 2016 · 1k+ posts · 890 votes
6y
@Trenton, keep looking, but I will tell you that is a very difficult price point to find a hard money lender for. The one guy I knew who could have helped you has paused his lending for a little while to see what the future holds.
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
6y
@Trenton Maye Have you tried smaller banks or credit unions in your area that can lend purchase + rehab funds on a distressed property? Typically these are portfolio lenders that hold the loan in-house, and therefore have more flexibility on credit and property condition. Sounds like your score is 670...I know in my area at least they could do loans as long as your score was over 660.
Investor · HI · Member since 2017 · 328 posts · 124 votes
6y
@Trenton Maye, I work with lenders that do these smaller amounts. However, since this is your first investment that might be a hurdle. Maybe consider bringing on an experience partner for the first one, or two. All the best.