Updated over 7 years ago on . Most recent reply
Collateral and Rehabs
I’m approaching my first go around with a fix and flip. I have a private lender that is interested in funding as many flips as I can bring to him, my concern is that he wants collateral on all of the “rehab” costs on the loan. For instance, If we borrow $100,000 to purchase the property, he can sell the property to immediately get his money back. However, for the $50,000 that it will take to complete said rehab, he is requesting collateral. How would you handle this request?
Is this normal? Should I expect this for every private lender deal?