Hard money loan for DP

Hard money loan for DP

Member since 2024 · 12 posts · 0 votes

I’m currently capital-constrained with two active deals (one flip and one long-term rental), but I just came across a Pittsburgh property that’s too strong to pass up.

I initially proposed a creative financing structure, which the seller declined. They’ve since come back accepting my original cash offer and want to move forward quickly. I’m looking for a hard money loan to cover the down payment and closing costs (approximately $20k total). The remainder of the deal is solid and already underwritten. The property is located in Pittsburgh, PA.

If anyone has a hard money lender they’ve successfully worked with, I’d appreciate a referral. Alternatively, if anyone here is interested in placing a short-term private/hard money loan on this deal, I’m open to a conversation.

Thanks in advance.

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Jeremy TaggartBusiness Member
Real Estate Agent · Pittsburgh, PA · Member since 2014 · 850 posts · 646 votes
8mo

@Jamie Dietz is local and does a lot of hard money loans here in Pittsburgh

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  • Elias HalvorsonBusiness Member
    HI · Member since 2024 · 225 posts · 130 votes
    8mo

    I would do a personal loan - depending on the amount. I have borrowed 85K from SOFI before (although not for real estate). That will be your quickest way, with the lowest fees, at a similar interest rate. A local bank/credit union should be able to do a personal loan for 20K as well. 

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  • Jeremy TaggartBusiness Member
    Real Estate Agent · Pittsburgh, PA · Member since 2014 · 850 posts · 646 votes
    8mo

    @Jamie Dietz is local and does a lot of hard money loans here in Pittsburgh

    DHRE- The Jeremy Taggart Team590 Reviews
    View Page
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    8mo
    Quote from @Tim Hartwig:

    I’m currently capital-constrained with two active deals (one flip and one long-term rental), but I just came across a Pittsburgh property that’s too strong to pass up.

    I initially proposed a creative financing structure, which the seller declined. They’ve since come back accepting my original cash offer and want to move forward quickly. I’m looking for a hard money loan to cover the down payment and closing costs (approximately $20k total). The remainder of the deal is solid and already underwritten. The property is located in Pittsburgh, PA.

    If anyone has a hard money lender they’ve successfully worked with, I’d appreciate a referral. Alternatively, if anyone here is interested in placing a short-term private/hard money loan on this deal, I’m open to a conversation.

    Thanks in advance.


     Have you looked into a business line of credit? $20k is a relatively small amount for a private lender

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  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    8mo

    It sounds like you may be at risk of overextending yourself. How much capital do you currently have set aside in reserves or contingency funds for the two active projects.

    One of the most common mistakes investors make is stretching themselves too thin and taking what could have been one or two solid deals and turning them into three underperforming properties because the projects are undercapitalized. That is a situation you want to avoid.

    There is no real estate transaction requiring a $20K downpayment that's life changing but being overextended can damage your credit, strain liquidity and set your business back a few years. Making sure each project is properly capitalized is far more important than adding another property prematurely.

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