How can I save Money to get a Hard Money Loan

5 Replies

Hey everyone. I have been looking in the market for a house to fix and flip. I see that I may have to go with hard money loans. I do have some questions about how to save up some money to have the money for the 10% down. I am looking for around 10,000$. I have found a house but I'm stuck on the money before I put in a contract. 

I understand that I can do a private investor but how can I locate one of them. Please help!!!!!

Thanks Chris. 

@Chris Colvin , there are many threads on this topic on BP. Enter some key words, search, and you should find plenty to read. Private investors are almost everywhere. You probably come in contact with many potential investors every day. However, it seems like you are looking for your first fix/flip, wish to borrow 90% from a hml and the other 10% from another investor. What promised return would make you comfortable lending money to someone who has no experience and has no financial consequences if (when) they make a mistake? Your problem is not finding investors it is learning enough to structure something that is appealing to invest in. Start by reading, attending REIA meetings, and connecting with some people who are doing what you wish to do. You can get there.

@Jeff Rabinowitz thanks Jeff. I will take a look around and read all that I can. I was thinking about whole selling a few times to get some money saved up so that I have the money to put down on a fix and flip. I am really excited to get started but I don't want to rush anything because I don't want a bad deal. Thanks for the in put. I am learning so much from this site. 

    That would be wholesaling. Many people start there. It is not as easy as many people claim on the BP posts or the guru webinars, especially to  do it correctly, but it can lead to a strong income stream. 

    My handyman for many years was an active duty firefighter. He worked on my houses and those of a couple other landlords on his off days. Eventually he bought his own rental. Now that he is retired with his own portfolio of rentals he won't work on mine anymore. He prefers to travel or go fishing instead of helping me out. What a guy.

    He was the handyman I refer to in this blog: I Burned My House To The Ground. I've got a feeling you would enjoy it.

HML's are in the business of lending money to the public. A private lender would be someone you have an existing relationship with. Boss, friends, aunt, uncle etc. that you get a loan from.

@Jeff Rabinowitz I have looked at wholesaling and I'm am trying to understand the way to work the numbers and not get stuck with the house..... I am talking to my agent to see if she has ever done wholesaling before. Also I am out trying to meet investors and network with them. 

That was a  phenomenal thing that you did for the fire department. There are so many new things that we can teach a new hire in a training burn so they can see it before there first real fire. Also just having family around to see what we really go into. 

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