Financing help for a newbie

[George Koltypin]

I am looking to get my feet wet in flipping in Connecticut but want to get my financial ducks in a row. If I get a private lender to finance 65%-80% LTV of the rehab could I get a bridge loan for the remainder of the funds?

[Ann Bellamy]

Well, technically, most hard money lenders are private (as opposed to institutional) lenders.

Don't worry so much about what to call them, as what their terms and conditions are.

If they are in the business of lending out money, (we'll call them hard money lenders) you are probably going to have trouble getting them to go for 65-80% of the ARV. 60-65% is more likely. If they are advertising, then they are not just private investors looking to do an occasional deal with a person like you, and have their own criteria. So ask if they allow 2nd position mortgages, and then keep looking until you find one. Then you will need to give your private guy a significant share of the profits because:
1. You'll have no skin in the game, and
2. He's in second position