Hard Money Loan
Hey - I just got UC for a condo flip here in Denver. The purchase price is $176,000 and the ARV is $250,000 with several recent identical comps in the same complex. I need a hard money loan that will allow me to put less than 20% down. Closing is Feb. 27th.
I have a lender I work with often but they want 20% down and I'm trying to minimize cash out of pocket for this flip. Historically, I've done these for 3 weeks or less and plan to have it listed within a month.
Any ideas?
Well, the lending environment is getting pretty hard as you probably know, and trying to find HMLs who don't require a 1 month hold period is hard, they all want you to hold it for a little because they need to make money too. I am assuming you know some wholesalers, they typically have lots of HML contacts. The only guys I know are requiring a 2 month hold period right now.
@Brett Deas I may be okay with a 2 month hold. Message me your contacts. Thanks!
Quote from @Brett Deas:I came here with a similar scenario. Would you mind passing your contacts' info along to me, also? Thank you.
Well, the lending environment is getting pretty hard as you probably know, and trying to find HMLs who don't require a 1 month hold period is hard, they all want you to hold it for a little because they need to make money too. I am assuming you know some wholesalers, they typically have lots of HML contacts. The only guys I know are requiring a 2 month hold period right now.
@Nikita Odnoralov F/F lenders may go as little at 15% down but there isn't enough info to say for sure. @Brett Deas is right. The lending market for F/F loans are not great at the moment so if it can work at 20% down and you will have it listed in a month, may be worth it.
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Quote from @Nikita Odnoralov:
Hey - I just got UC for a condo flip here in Denver. The purchase price is $176,000 and the ARV is $250,000 with several recent identical comps in the same complex. I need a hard money loan that will allow me to put less than 20% down. Closing is Feb. 27th.
I have a lender I work with often but they want 20% down and I'm trying to minimize cash out of pocket for this flip. Historically, I've done these for 3 weeks or less and plan to have it listed within a month.
Any ideas?
There are some that can do 85% LTV with a 7 day close. How much in rehab?
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How much rehab does the property need? The deal sounds tight.
Hi, I'd love to connect! Just sent you a DM.
Quote from @Constancia R.:Feel free to message me and I can send them over.
Quote from @Brett Deas:I came here with a similar scenario. Would you mind passing your contacts' info along to me, also? Thank you.
Well, the lending environment is getting pretty hard as you probably know, and trying to find HMLs who don't require a 1 month hold period is hard, they all want you to hold it for a little because they need to make money too. I am assuming you know some wholesalers, they typically have lots of HML contacts. The only guys I know are requiring a 2 month hold period right now.
If you own other property free and clear, you can cross-collateralized the free and clear property in lieu of a down payment. Most hard money lenders will do it if they know how.
You can also raise private capital for the down payment or JV the project. 50% of something is always better than 100% of nothing.
I have also seen some investors taking out personal loans from places like SOFI. This can be extremely risky, but it is an option when the deal makes sense.