Hard Money and Private Investors advice needed

Real Estate Deal Analysis & Advice
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Hard Money and Private Investors advice needed

Bj Meadows
Panama City, FL · Member since 2016 · 2 posts · 0 votes

I have a piece of property that is worth about 500K and I am able to purchase at 250K. Deal is time sensitive. Need to get a deal done asap but can not get financing on my own. Trying to look into hard money or private lenders or investors. Any suggestions or advice? In Panama City Fl area. 

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  • Jay Barndt
    Investor · Julian, PA · Member since 2016 · 92 posts · 24 votes
    10y

    Hi @Bj Meadows, this sounds like a great buy but i think some of us could help you out a little more if we knew what your game plan was, is this property a buy an hold, are you going to turn it and wholesale, does it need work are you going to flip it? just so we have an idea what your looking to do with the property, hard money lenders are more for the wholesale/flip business it is rough to find one with good numbers that would work to do buy and holds using the BRRR strategy. private money can be the best bet, but again depending on your plans for the property. also is it on the MLS or is it FSBO, if so what is the sellers situation, you may be able to do something creative if they can work with you since bank financing is out as you mentioned,

    Jay,

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    with limited information. one can make assumptions. .IE you have no cash to put into the deal.

    you may find a lender that will bite.. but most won't

    you would probably be best off finding and equity partner lest the deal go bye bye

    also as a HML in my day.. 50% Loan to coast was the most we would go.. LTV had no bearing on the transaction. so I suspect most lenders will offer you 125k with you putting down 125k plus fees.

    Now there could be someone that specializes in dirt but those folks are rare as hens teeth.

    Myself being a developer this was my specialty but I always did equity participation loans. in other words HML interest plus a good % of the up side.

    bottom line if you want to buy land you should have all cash unless your willing to give up equity .

    and well maybe that's better than not buying it at all.

    I can't tell you how many folks I have talked to over the years and they say oh man too expensive only to never do the deal at all.. something of a good deal is better than nothing of a good deal.

    not to mention you could create a lifelong lending partner.. so spead the wealth you may like how it turns out.  I have and always will give the money the lions share of any deal.

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  • Bj Meadows
    OP
    Panama City, FL · Member since 2016 · 2 posts · 0 votes
    10y

    I neglected to say this peice of property contains a 7000 sq ft home- so it is not just land

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