Hard money lenders for first time investors

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Brandon BeardtPro Member
Lender · La Crescenta, CA · Member since 2021 · 261 posts · 157 votes
4y
Quote from @Crystal Mickles:

Are there any hard money lenders that work with first time investors ? 

 Hi Crystal,

There are quite a few different hard money lenders that will work with first time investors. 1st timers are usually capped at lower LTV/max loan amount and higher pricing. But as you gain more experience, the max LTV can increase quite nicely and you'll get better pricing. I'd say do some research in the forums and look at some Hard Money Lenders listed in the Network tab above. Talk to a few of them, ask a lot of questions, read their reviews, and see what they offer! You'll want to fully understand what you're getting yourself into before anything.

[email protected]818-726-2418
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  • Chris Tarpey
    Investor · Jacksonville, NC · Member since 2018 · 193 posts · 107 votes
    4y

    To my knowledge Lima One Capital will, you will just pay more for it until you get more experience!

    0Reply
  • Robert Neely
    Member since 2019 · 10 posts · 5 votes
    4y

    Disclaimer: I work for Lima One


    Chris is correct. We do not require experience for Fix and Flip or Rental investors. We do offer better rates as you gain experience.

    1Reply
  • Brandon BeardtPro Member
    Lender · La Crescenta, CA · Member since 2021 · 261 posts · 157 votes
    4y
    Quote from @Crystal Mickles:

    Are there any hard money lenders that work with first time investors ? 

     Hi Crystal,

    There are quite a few different hard money lenders that will work with first time investors. 1st timers are usually capped at lower LTV/max loan amount and higher pricing. But as you gain more experience, the max LTV can increase quite nicely and you'll get better pricing. I'd say do some research in the forums and look at some Hard Money Lenders listed in the Network tab above. Talk to a few of them, ask a lot of questions, read their reviews, and see what they offer! You'll want to fully understand what you're getting yourself into before anything.

    [email protected]818-726-2418
    3Reply
  • Michael Kinsella
    Lender · Member since 2018 · 617 posts · 275 votes
    4y

    There are.

    Two reasonable starting points...

    1. BiggerPockets --> Network tab --> Hard Money Lenders --> Filter by state

    2. Local REIA events where you can get lender referrals from other investors and also network with local hard money lender reps.

    2Reply
  • Steven Goldman
    Lender · PA · Member since 2019 · 535 posts · 461 votes
    4y

    Their are a few rehab. lenders who will approve an inexperienced borrower.  I would make sure you get enough quotes to compare fees and points. The rehab. lenders who will lend to a newbie, will not allow the newbie to general contract the job unless it is a really light cosmetic rehab. The greater the size of the loan, the more you will need for a down payment on the purchase price and the higher the risk, the higher the rate. I always suggest that you have a broker who has personal rehab. experience review your options before making a decision about a lender. The broker will know which lenders works best with a newbie. They can also tell you who has a easier and less problematic draw process and assist you with creating your scope of work.

    Of course in full disclosure I am tooting my own horn. Regardless, you need to assemble a team of knowledgeable vendors who can guide you through the beginning of your rehab. journey. Having a good agent, broker, insurance agent and title person can help you avoid mistakes that many newbies make.  Good luck,

    1Reply
  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    4y

    As long as you have the right collateral and your numbers and contractor checks out, you're good to go!

    [email protected]
    The Elle Group5153 Reviews
    WebsiteView Page
    0Reply
  • Anita Cofer
    Rental Property Investor · Member since 2018 · 2 posts · 1 vote
    4y

    What’s the minimum cap rate to aim for for MFH 4-6 units.

    0Reply
  • Eric GoldmanBusiness Member
    Lender · PA · Member since 2019 · 359 posts · 192 votes
    4y

    you can do a purchase and rehab loan with no experience, for a few months most lenders shut that down. Its back.. 

    some times higher rates. if you come with a great credit score and a solid deal it wont matter.

    484-574-4878
    G2loans- Investor and Commercial Mortgages531 Reviews
    WebsiteView Page
    1Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    4y

    Happy to connect you with mine! 

    2Reply
  • River SavaPro Member
    Lender · USA · Member since 2022 · 1k+ posts · 1k+ votes
    4y

    Hi Crystal! Would love to chat and help just sent you a friend request 

    [email protected]
    2Reply
  • Daniel TanasaBusiness Member
    Realtor · Houston, TX · Member since 2019 · 351 posts · 174 votes
    3y

    Hello Crystal!

    I am happy to connect you with some I worked before. Feel free to reach out.

    1Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    I have one I'm happy to connect you with 

    0Reply
  • David Taylor
    Lender · Irvine, CA · Member since 2013 · 22 posts · 2 votes
    3y
    Quote from @Michael Kinsella:

    There are.

    Two reasonable starting points...

    1. BiggerPockets --> Network tab --> Hard Money Lenders --> Filter by state

    2. Local REIA events where you can get lender referrals from other investors and also network with local hard money lender reps.


     #2 is a solid starting point. Face to face knowledge in a comfortable atmosphere. Can't beat it.

    0Reply
  • Amika B.
    Real Estate Agent · Houston & Austin, TX · Member since 2022 · 84 posts · 32 votes
    3y

    Juan Paulino at Wildcat Lending. They took me when no one else would and to this day they have the best deals. https://wildcatlending.com/jua...

    0Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Everyone has to borrow hard money for the first time.

    1Reply
  • Chrissy Gley
    Member since 2023 · 12 posts · 7 votes
    3y

    Any suggestions for hard money lending on something other than real estate purchasing & flipping? I have been trying to find an investor or someone to lend interest only loan ? 

    0Reply
  • Mike Klarman
    Specialist · NJ · Member since 2022 · 1k+ posts · 653 votes
    3y

    Fix n Flip loans are interest only loans.

    Here's the thing, let's switch places.  You're the lender with the cash and a borrower submits the application where the borrower has 0 experience.  Ok, so far you're not liking it really.  Remember this is your money you are lending out. What else would you need to see on that application to make you feel comfortable?  If it was me, I'd wanna see a high credit score for one.  At least 720 or better.  Then the other thing that would put me at ease is their liquidity.  If a 0 exp investor shows 200k, then all of a sudden the lender isn't so nervous.

    So, yes, you will get lenders to work with you but if you have 0 exp you better have good credit and be liquid.

    0Reply
  • Chrissy Gley
    Member since 2023 · 12 posts · 7 votes
    3y

    Thank you. Credit score is high 700’s, 2 homes as collateral. SBA lends 5 Million. My project is going to be roughly 7.2- so I am looking for funds to cover my injection of approximately 2 million. Even bring someone on as a silent investor.

    We were working with a company that was going to do interest only, however we started hearing about them taking longer on releasing funds, and other issues from some franchisees. So we opted not to move forward with them.

    0Reply
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