Hi I'm Alex and have decided to become a financial freedom finder as all of you are indeed doing. I am now in the hunt for a hard money lender. My plan is to flip two homes. Be successful on those create some capital and then start the BRRR strategy.
I own and operate a woodworking business building tables and bars and very custom items for clients. I am no stranger to construction and estimates .
I do have a question. For my first loan. Should I try a conventional mortgage with rehab loan first? I just feel like that will take months to obtain when I’d like to be done with my first flip in the next 4 months.
Any thoughts are appreciated .have a great week!
You need to find the property before you get the funding. No-one will loan without specific numbers
What area are you located? I think this depends highly on the deals available in your area. In my area most of the properties with enough spread in profit cannot be financed due to their condition. Heck, even if they were in decent shape if the deal is that good you’ll have a handful of Investors offering all cash just to secure the deal over financed buyers. Most banks take 30-45 days to close while my private money lender takes 14, a seller will always pick me over the financed buyers. That’s why I say it is highly dependent on your market.
Gabe, that makes sense. I'm in orange county, NY area. This is very helpful. You are correct. I don't think a bank will give me a loan based on the condition of the homes I've found. Unless it's an HFA 203 and I put like 40% down. These responses help shape my direction. Thank you! Time to get numbers together on 3 homes and approach private lenders.
I have an associate that sources below market value properties in that area and we work with him on funding his deals often it might be a good outlet
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