Hard Money Loan with No Experience
I want to begin rehabbing houses. I know I am not at the point where I can start because I need to educate myself more on the subject. I know that I would need to utilize a hard money loan as my best option for the first rehab project, if not the first several. The most difficult part in securing the loan would be the experience level. I have none. Please give me your thoughts on using a hard money loan in my situation.
My thoughts are that initially I would speak with local HM Lenders to see what they require and their rates. After that, I would use a general contractor to get a quote on the house with itemized repairs. I would present the quote to the HM Lender when I specify how much money I would need and to ensure that my figures are profitable for both HM Lender and me. I would present the lender with very detailed analysis of the numbers, including: purchase price, comps sold in area, General Contractor quotes, percentage set aside for overages, exit plan, etc.
Please give me your experienced thoughts on this subject as to whether this is possible or am I just unrealistic in getting HM loan without experience.
Thanks