Hard Money Recommendations?

Question

Anyone recommend a hard money company that lends in Illinois? For new construction and fix and flip?

Devin Peterson · Answer

Kevin, some of the best lenders out there may not located in the state you're looking to buy but can still offer some very competitive terms. I would connect with an experience broker who can help you compare terms across different lenders.

Deborah Wodell · Answer

Can help you out on this! There are lots of lender who can lend in that State.

Erik Estrada · Answer

Hi Kevin,

Happy to connect

Johnny Curran · Answer

I'd love to help, let's connect

Mark Ainley · Answer

@Kevin Alvarado we use Eric Workman at Renovo.  DM me if you want an email intro.  I have been using Renovo since 2014 now.  My cohost on Straight Up Chicago Investor Podcast @Tom Shallcross has done 40+ deals with Renovo too.

Jonathan Klemm · Answer

Hey There @Kevin Alvarado!  Here in the Chicago area, I have worked with Renovo Financial many times and havealways had a good experience.

I can also share some of my other hard money contacts in a PM.  Where at in Chicago is your project and how much experience do you have?

Experience is often the limiting factor with hard money lenders.

Mike Klarman · Answer

Most national lenders lend in ILL.  It's not one of those states you see on the do not lend list.

The question is more of what everyone is poking at.  Do you understand what you're getting into?  For a new investor, this can be a rougher market for lending and exit.  If it is Chicago area.

I urge any investor, new and old, know the numbers.  It's so important to know the numbers and be conservative on exits.  As a Consultant, Loan Officer, and Broker I have seen hundreds of projects play out.  I can count on one hand the times investors got their number on the way out.  You are missing the ARV lots of times by 10% - 20%.  Project costs and timelines are always 10% - 20% more.  Given those normal circumstances if you add on top that you are in a bad project, things can go very sour very quickly.

Chris Seveney · Answer

IF you want to provide some additional info we can provide more direction. For example is it in chicago? Is this your first deal or how many deals have you done? What is your percentage for down payment / cash in hand?  what is your approx credit score.

Depending on these factors there are some lenders who are a dime a dozen who will fund this and on the flip side many will turn it away and it will need to be someone who funds it from their balance sheet (Which will be a lot more expensive).

AJ Exner · Answer

Hey Kevin,

Is this your first time rehabbing in IL, and is it in/around Chicago? You might run into some issues if this is your first foray into that area as most lenders are going to either cut leverage, if they lend there at all.

You will inevitably find someone who can help you, just make sure to vet them as much as possible going into the deal to ensure that you don't get down the road and something that could have been avoided keeps the deal from happening.

Happy to help if I can

Good luck!

Hard Money Recommendations?

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