Wholesale financing options?

Question

I’m looking at a few potential multifamily deals sent to me by wholesalers. I know they want to move quickly and cash, HML, or private money are usually the main or only accepted forms of financing. However, are there other options? If a property is 100% occupied, would aHML be interested if I can’t do an immediate rehab?

Grant Rothenburger · Answer

@Aaron Hale companies like limaone and financeofamericacommercial do long term hard money lending. Look into their options.

Andrew Bang · Answer

Yes, most hard money lenders will still fund your deal if there are tenants still in the property.   Just add the time it takes to evict or give the tenants notice to vacate as part of your hold time.

Michael Glist · Answer

Yes, most lenders would be willing to as long as the tenants will be out in a timely manner however it may affect the LTV that you get due to the additional risk of it taking longer and tying up their money for a longer period of time. Also if it does not need to be rehabbed immediately you can also look into a short term rental program and them once your tenants are out you can take cash out or get a LOC do the rehab and refi or sell upon completion.

Salvatore Lentini · Answer

@Aaron Hale - you may be better off with a bridge loan.  Usually longer with a better rate.  If you have a property that is stabilized, it may make more sense.  I have some lenders that I've done bridge loans with and it could be the best of both worlds.  Quick close like HML, a little better rate and longer hold time.

Aaron Hale · Answer

Would you have any recommendations for lenders offering bridge loans with fair rates? I’m buying in Ohio. Do I need to be searching locally?

Aaron Hale · Answer

How could I learn more about a short-term rental program?

Wholesale financing options?

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