Are two hard money loans possible for one property?

Question

Is it possible to get two hard money loans for a property that is being flipped?  One loan for the house, the other loan for renovations.

Michael Evans · Answer

We have a strategy where use a 1st and 2nd position loan to fund about 90% of the total costs.  The flipper (equity investor) covers out of pocket costs and holding costs. PM if you're interested.

Jackelyn Gonzalez · Answer

@Tiffany Boulden

There are hard money lenders that will lend in 1st, 2nd and even 3rd positions. However the combined LTV (loan to value) will have to be low. There are a ton of private money lenders out here that will, not sure in your specific area. I keep contacting different lenders. Now if you're looking for more than 100% financing....that won't happen with multiple lenders. Your best bet will be to find an ARV (after repair value) lender that can lend a high purchase LTV and all or most of the rehab.

Tiffany Spann · Answer

@Jackelyn Gonzalez - thanks for this info!

Chris T. · Answer

@Tiffany Boulden

Assuming you have some experience, most HML will fund some or most of your rehab loans as well.

No HML is going to want to be in 2nd position. But all of them require you to have skin in the game. Go raise funds (aka private money).

Tiffany Spann · Answer

Thanks Nick - I would like to get in to flipping with investing as little of my own money as possible.  What are alternatives without having two hard money lenders?

Nick C. · Answer

I don't think a hard money lender would be okay with being in the 2nd position unless it was someone you knew. Also make sure the first lender is okay with you putting a 2nd mortgage on the property before you purchase.

Are two hard money loans possible for one property?

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