Private Lending Strategies
Hey Everyone!
I'd really like some feedback on different strategies everyone has used to obtain private lending or a partner who brings on capital.
Some background on me, I am a Construction Superintendent and have overseen subdivision development to single family demo/rebuilds, I also oversee renovations for work and have managed my own renos. I have 1 rental and one personal home. I have the knowledge and deals, but I just can't seem to find anyone to help fund or invest in my deals. The people I spent time creating relationships with backed out because they aren't comfortable investing in today's market. How have you handled these types of situations? I attend a small meetup bi-weekly, I talk to local investors, I read books on networking and raising capital, I just don't understand where I am lacking.
I greatly look forward to hearing your advice. Thank you!
Hi @Brittany Trevino, what are your goals?
Are you looking for someone to fund the down payment or are you looking for someone that can finance 80-90% of the deal?
Answering these will allow myself and everyone else to answer your question better.
Right now I’m looking for a partner to flip with. They would bring the money to buy the property and I would handle the entire renovation & costs to renovate.
Quote from @Brittany Trevino:
Right now I’m looking for a partner to flip with. They would bring the money to buy the property and I would handle the entire renovation & costs to renovate.
Quote from @Brittany Trevino:
Right now I’m looking for a partner to flip with. They would bring the money to buy the property and I would handle the entire renovation & costs to renovate.
@Brittany Trevino, if you have the costs to renovate, you might not need to find a partner.
Since you have experience, you might be able to get up to 90% of the purchase price and rehab costs financed.
For example, if you are buying a $250k property with $50k rehab, you would need to bring $30k to the table, not $50k. Additionally, you will not need to split profits with a partner.
If you would like a recommendation, feel free to connect.
Hope this helps! Please let me know if I can be of any assistance.
Hey Andrew,
Are there still lenders offering to fund up to 90% of a deal? How are they comfortable taking on that level of risk in today's market?
Obviously they have the property as collateral but I can't see how the math works in their favor if they were to take over the property through foreclosure considering the costs involved.
I would think something like 65-70% LTV would make more sense.
Thoughts?