Hard Money for purchase and P2P for rehab

Plainfield, IN · Member since 2015 · 23 posts · 5 votes

I absolutely know I'm not the first to come up with but I can't seem to find a thread talking about it.

To get as close to 0 down, utilize hard money for the purchase and peer to peer lending for the rehab. I know @Dawn Anastasi talked about it in her Podcast, but she nor Brandon or Josh had tried it. Am I missing something here?

0 Reply

22 views

Most Popular Reply

Dawn AnastasiPro Member

Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes

10y

@Mindy Jensen is correct -- I used P2P lending 3 times:

a) Property purchase of $24,900 and borrowed $21,000

b) Property purchase of $23,000 and borrowed $18,000

c) Property purchase of $24,000 and borrowed $30,000

So P2P can be used to buy entire houses or finance a large portion of them.

Podcast Guest on Show #29

1 Reply

See this reply in the discussion

4 Replies

Jump to latestLatest

Sort by

Brent Coombs
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
10y
@Scott McGhee, sounds the same as just borrowing from 2x HML's, or using personal loans together with Credit Cards, or just 1x HML who will lend for the purchase AND rehab?
It all comes back to: how GOOD is the deal you found, and who can you convince of that?
0 Reply
Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
10y
@Scott McGhee, I have used hard money to finance a rehab.
This was about 4 years ago, but it was pretty easy.
Hard Money is going to want you to have some skin in the game, so you'll have a hard time finding someone who is going to give you 100% financing for the purchase. If you do find someone offering those terms, make sure you do your due diligence and vet them extremely thoroughly.
I believe @Dawn Anastasi financed her entire property purchase with P2P Lending - She's in the $30,000 price range and P2P lending limits are around $35,000.
[email protected]Podcast Guest on Show #261
0 Reply
Dawn AnastasiPro Member
Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
10y
@Mindy Jensen is correct -- I used P2P lending 3 times:
a) Property purchase of $24,900 and borrowed $21,000
b) Property purchase of $23,000 and borrowed $18,000
c) Property purchase of $24,000 and borrowed $30,000
So P2P can be used to buy entire houses or finance a large portion of them.
Podcast Guest on Show #29
1 Reply
Patrick Sears
Midlothian, VA · Member since 2013 · 130 posts · 17 votes
10y
Hi Dawn,
You used P2P to purchase the home, but where did the rehab money come from? I have $30,000 + homes here in Richmond, but they often need $10- $20k in rehab (windows, siding, roof, etc) so they end up being more than the typical P2P max amount of $35- $40k.
Wondering if I could get $35 from Prosper then another $20 from a high risk P2P like Avant?
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.