LOOKING FOR FUNDING ON NJ & CT DEALS
West Orange, NJ · Member since 2018 · 93 posts · 7 votes
Hi everyone,
I just joined BP and excited to get things going for my business. I've been operating for a few months now and getting better at making offers. However, I am in need of financing my deals and I am alone in this journey. I already have buyers waiting for me to fulfill their dream home but I don't know how to go about closing the deal without money. I operate in NJ and CT and soon PA. I would like to work with a private lender or lender in general that can help me, and educate me on how to get financing and do a deal right. Thanks in advance.
Hello @Asher Carr,
Welcome to BP!
Glad to see you are taking action by making offers. But make sure you have the capital to close those deals when you get one accepted, otherwise the agents will remember that you cannot close and will think twice about accepting your offer next time. It is a small industry and your reputation plays a large part in your success.
It terms of working with private lenders/lenders:
My advice is to understand these numbers:
There is no magic and the more you become an expert in your area, the easier it becomes to spotting a good deal and understanding the numbers above. Typically you have to build a track record first, then private money becomes "easier". Not always the case, but at first I used hard money. They lend 85% of the purchase price, 100% of the rehab, NOT exceeding 75% of the ARV.
And with private money, you can create any deal structure. My last one was financed 100% of all costs, purchase price, rehab, holding costs, etc. So I didn't pay any money during the project and the lender received the payout at closing. I offered them 10% fixed, whether we closed the deal in 6 months or 12 months.
The best way to educate yourself is going to meetings, talking to other successful investors, and reading. Check out Anson Youngs Book, I just finished reading it yesterday. I think it would be a great guide to help fund your deals.
Best of success!
-Scott
Hello @Asher Carr,
Welcome to BP!
Glad to see you are taking action by making offers. But make sure you have the capital to close those deals when you get one accepted, otherwise the agents will remember that you cannot close and will think twice about accepting your offer next time. It is a small industry and your reputation plays a large part in your success.
It terms of working with private lenders/lenders:
My advice is to understand these numbers:
There is no magic and the more you become an expert in your area, the easier it becomes to spotting a good deal and understanding the numbers above. Typically you have to build a track record first, then private money becomes "easier". Not always the case, but at first I used hard money. They lend 85% of the purchase price, 100% of the rehab, NOT exceeding 75% of the ARV.
And with private money, you can create any deal structure. My last one was financed 100% of all costs, purchase price, rehab, holding costs, etc. So I didn't pay any money during the project and the lender received the payout at closing. I offered them 10% fixed, whether we closed the deal in 6 months or 12 months.
The best way to educate yourself is going to meetings, talking to other successful investors, and reading. Check out Anson Youngs Book, I just finished reading it yesterday. I think it would be a great guide to help fund your deals.
Best of success!
-Scott
Hi Asher,
I'm relatively new to BP as well. I'm a loan officer and I'm licensed in CT and PA, NJ will be approved soon. I work for a more traditional lender (although we do have self-serviced programs for investment property with less strict guidelines) so it would depend on the individual deal and your financial situation whether or not I could get you qualified with us, but I'd always be willing to answer any questions you have about financing in general. I'll send you a PM as well.
Hi Asher,
I'm relatively new to BP as well. I'm a loan officer and I'm licensed in CT and PA, NJ will be approved soon. I work for a more traditional lender (although we do have self-serviced programs for investment property with less strict guidelines) so it would depend on the individual deal and your financial situation whether or not I could get you qualified with us, but I'd always be willing to answer any questions you have about financing in general. I'll send you a PM as well.
@kyle johnson. I'd really appreciate ot that. Yes. Let us connect and talk more.
Hi everyone,
I just joined BP and excited to get things going for my business. I've been operating for a few months now and getting better at making offers. However, I am in need of financing my deals and I am alone in this journey. I already have buyers waiting for me to fulfill their dream home but I don't know how to go about closing the deal without money. I operate in NJ and CT and soon PA. I would like to work with a private lender or lender in general that can help me, and educate me on how to get financing and do a deal right. Thanks in advance.
Congrats on joining BP and getting started! I would love to connect with you and see what we can offer on your deals. We do loans with first time rehabbers often which most people feel is the issue, but really it's more so the numbers in the deal - they have to make sense to the lender, AND to you. We're a national Mortgage Brokerage out of PA and do loans in all 50 states nationwide. Give me a call at 920-285-8900 or shoot me an e-mail at [email protected] and I can happily walk you through the process!
Good luck!
Marty J
Hello @Asher Carr,
Welcome to BP!
Glad to see you are taking action by making offers. But make sure you have the capital to close those deals when you get one accepted, otherwise the agents will remember that you cannot close and will think twice about accepting your offer next time. It is a small industry and your reputation plays a large part in your success.
It terms of working with private lenders/lenders:
My advice is to understand these numbers:
There is no magic and the more you become an expert in your area, the easier it becomes to spotting a good deal and understanding the numbers above. Typically you have to build a track record first, then private money becomes "easier". Not always the case, but at first I used hard money. They lend 85% of the purchase price, 100% of the rehab, NOT exceeding 75% of the ARV.
And with private money, you can create any deal structure. My last one was financed 100% of all costs, purchase price, rehab, holding costs, etc. So I didn't pay any money during the project and the lender received the payout at closing. I offered them 10% fixed, whether we closed the deal in 6 months or 12 months.
The best way to educate yourself is going to meetings, talking to other successful investors, and reading. Check out Anson Youngs Book, I just finished reading it yesterday. I think it would be a great guide to help fund your deals.
Best of success!
-Scott
Thank you Scott for the great information. I definately need a better definition of ARV. More so on how to calculate it. Ive been using the rental property calculator on BP and its so cool to see how the numbers generate. This should help my understanding on how to present the deal to lenders and make things happen.
In my opinion I think ARV is a little easier than repair costs. You can get pretty close by looking at previous sales in the area with similar features i.e. beds, baths, square footage, level of upgrades, etc. It's true that it's only worth what someone's willing to pay for it. Repair costs on the other hand can be much trickier without experience, but Jay Scott's book on estimating rehab costs has really good information in it. I actually used it to estimate the costs of a rehab my girlfriend's mom was doing to their house, and I got within $1000 of what it actually cost them.
Welcome to BP @Asher Carr!
We are a direct lender and looking to fund more real estate projects. We lend on commercial and residential real estate. Purchase, refinance, cash out, multiple property loans.
Our loan amounts range from $200,000 - $10M. If you want to shoot me an email I can send you over some more details about our program.