How to use Hard Money Lenders to build a portfolio?
Hey BP members any advice is greatly appreciated.
I've looked on the forums and blogs but can't seem to find the answers to my questions.
I want to build a business of owning rentals and doing fix and flips here and there.
I live 10 minutes outside of St. Paul MN, my Dad is an experienced contractor and I will have my RE license in about a month so I know with my resources and the market i'm in this can be done.
I am waiting for 2 short sales to go through right now and the banks are taking their sweet time. Both of those needed a 20% down payment which I have from the previous flip I did (these 2 short sales will be buy and holds) but after those I won't be able to make another 20% down payment for a third investment property.
I would like to use a private/hard money lender to help me fund future deals but all of the hard money lenders i've researched require you to already have the property under contract. What I would like to do is market alot by doing direct mail, driving for dollars, ect.. and be able to use a HML so I can offer cash to these sellers. Obviously it has to be a great deal and I understand most HML will only finance 65%-70% ARV which is fine. I will be looking for distressed houses that need work.
Does anyone know how I would go about making this work or any HML that would provide PROOF OF FUNDS available in my name so I am able to make CASH offers on these houses?? I figure if I am able to offer cash I would be able to get some deals a little cheaper.
Please let me know if I'm dreaming and this isn't the way it works. I'm still new to this and am very determined to learn all I can to build my Portfolio.