Rental Property Investor · Orlando, FL · Member since 2021 · 2 posts · 2 votes
I'm currently interested in a property where the seller only accepts cash or hard money. I am planning to use the BRRRR strategy whit this property and I'm not 100% on understanding how to get started down that path and how to navigate through that transaction. I understand the pros and possibly all the cons, but there is still a sense of fear I'm trying to overcome. I have never had to find a hard money lender or private money lender to in essence "ask" for money Does anyone have any pointers, tips, or directions to good lenders?
Rental Property Investor · Holly Springs, NC · Member since 2019 · 18 posts · 17 votes
5y
@Heyward Mitchell@Christine Smith - Feel free to connect. I'm not the most seasoned on this topic but I have used a hard money loan recently to faciliate my renovation/flip and would be happy to answer any questions I can!
Rental Property Investor · Holly Springs, NC · Member since 2019 · 18 posts · 17 votes
5y
@Heyward Mitchell@Christine Smith - Feel free to connect. I'm not the most seasoned on this topic but I have used a hard money loan recently to faciliate my renovation/flip and would be happy to answer any questions I can!
Lender · Denver, CO · Member since 2017 · 348 posts · 143 votes
5y
Congrats on getting started that is the first step.
I would suggest either talking to other investors in your area that you know about lenders that they have used and that they like. They can be a good source for lenders that are great as well as let you know which ones to stay away from.
You can also use the "Network" area here on BiggerPockets to find lenders that lend in your area.
Make sure that when talking to lenders you are getting all the information necessary such as how fast can they close, down payment requirements, how much of the rehab can they fund, do they fund the rehab or part of the rehab upfront or will you need to have some reserves on had to pay for upfront costs while you wait on a draw or finding a contractor that knows the business and is willing and able to start the work and get paid when they draw(s) happen, what their fees are not only upfront but also if there are any draw request fees as well as what you payments would be for and if they are due monthly or if they are rolled into the loan.
Best of luck on your new venture and good luck on getting the property you mentioned under contract.