I started dabbling in real estate several years back with good success but bought another business and got out of the game for a while. The bubble burst in between then and now so I'm not sure how relevant those deals are. I've recently got back into it and am currently doing a flip for an awesome deal (in my opinion anyway) at 100% (purchase and reno) at a flat 6% for 6 months. Absolutely nothing out of pocket. Usually that type of deal is at least 10% around here, which I would be OK with if the numbers worked, and not likely to be 100% funding across the board.
All that said, my lender is simply a fickle, old miser (self made) and you never know whether he will be in or out on a deal no matter how solid it is. Just depends on his mood that day. As you all know in this game, that won't cut it. I need a lender I know I can call and make things happen if all the criteria is there and need to move on a property quickly. Private lenders all want a track record, which is understandable. My question to those of you in the lending business is; how many flips or rentals is enough to establish a track record? 1, 2, 10, 20? Do the ones I did 10-15 years ago still count? No one can seem to give me an answer and I'm aware it will vary from person to person. Just trying to get a feel for what's reasonable. I'll net about $25k off my current flip ($100K) and am ready to get started on another as soon as this one is sold but I have no idea whether my guy will still be on board after he get his investment plus interest back. I'd hate to be a one hit wonder on my return to business.
Thanks @Nick Britton. The deal I have now is purely based on exactly that. Known him for years and he knows I'll go cold and hungry before I ever miss a payment on anything.
But like I said, he's fickle and odd. I'm sure I could rely on him for a reference at least for future endeavors.