The Ins and outs of Hard money lender

[Daniel Brown]

Good evening guys and gals! Your favorite newbie here to ask another newbie question. It's the dark side I'm referring to. The ones name that shall not be mentioned. The Hard money lender... duh duh duhhhhh. Ok, enough of my theatrics. 

So some back story of why I'm asking about A HML. I have found a screaming deal. For my first deal. In a really good area with good schools. The price point is 131k. Did comps in the area that come to 310-300. Rehab is going to be about 70k. I have a partner in on the deal that will go half at 100k but I need to supply the other half of the 100k.

My problem. I'm currently doing a live and flip at my primary residence so all of my funds are tied up into this project so I have no capital at this point and time.

I was thinking of using a HML but dont know all the ins and outs that comes with using a HML. Or I could raise private capital but I dont think I have enough time to do it because this property just came on to the market. So if anyone could share their wisdom with using an HML that would be great!

[Dennis Pressey Jr]

@Daniel Brown If using HML there is no need to come up with so much cash out of pocket. Leverage the cash to put down payment on HML (10% for the best lenders as they’ll lender 90% of purchase/100% rehab funds). He comes out the down payment cash and you front the ‘credit’ guarantees/liabilities - split the back end. Done.