Updated over 12 years ago on . Most recent reply
Private money LTV
I'm looking to either get a hard money loan, or find a partner to 50/50 with. I find the deals, plan, design & manage the project, and the partner brings the capital. While I am experienced and have a proven successful track record, it's difficult (for me) to locate money investors. On the other hand, I only currently have 20-25k to invest if I were to use hard money. That just isn't enough. I need up to $150,000 not including rehab. Most hard money lenders will only lend 65%-70%.
Another hurdle when using hard money lately is the extremely hot Sacramento market. I locate deals a few different ways, mostly off the MLS lately, and banks are not considering hard money offers because they typically have 15+ cash offers.
An example: I submitted an offer (all cash) on a property that wasn't accepted. A week later the listing agent sent out an email to everyone who made an offer on that property that stated "HARD MONEY IS NOT CASH. If your offer was cash and you are still interested please resubmit your offer".
Apparently the offer they accepted was written as cash, but was actually hard money. When the bank found out they flat out canceled the contract and put the property back on the market.
It's ridiculous but it's the current market in my area.
Any suggestions on ways to overcome these hurdles or have any creative financing ideas?