Bridge Loan (s) Needed

[John Prince]

Hello Bigger Pockets,

I bought my first flip a few weeks ago, a great deal! It was a pre-foreclosure for 111k, that needs 50k of rehab, and has an ARV of 255K. I have a pretty good system for finding more deals like this and would like to get multiple projects going. But I'll need some bridge loans until I get my capital out of this project. Any private money lenders that specialize in gap loans? I have a great hard money lender that will lend me up to 80% of ARV. I just need a bridge for the 10% down he requires. Please contact me at 801-913-1505 or [email protected]. I'd love to go into more detail on my current project and plans.

[Darren Eady]

I'm sure he requires 10% down minimum from you as your skin-in-the-game. I've learned through much experience that without some of your own money, or at least your family's money, you will pull out of a deal as soon as it goes bad, during the rehab phase, and leave the lender hanging with an unfinished product. The ARV is never realized if the rehab is not completed. I guess the answer is . . . if you don't have the 10% down from your own pocket, wait until you do, or ask your family to come up with it because I doubt you'll get 10% in 2nd position based on a fictitious ARV value from anyone in BP . . . unless they don't know better.