I'm currently looking to get into contact with all lenders for knowledge, insight and advice on how to close on financing properties
I am fairly new to the business, but I do own a couple properties in the downtown Albany NY area free and clear. My goal is to GET THESE PROJECTS REHABBED!
From my experience I have been in contact with two hard money lender companies, both of which I did not close on. Reason, they were offering way more than I needed and asking for too much to bring at closing. Prior to this, I was clear on my second go with a company that I could not bring a lot to close and is it possible to get funding on a project without coming out of pocket? I was told yes! For these companies they make you come out of pocket for appraisal and broker fee ($1,000 plus), which I understand and I'm not against investing in my company but to lose that amount and not get a deal hurts, especially when it happens twice. But throughout the 7 months of disappointment with these companies and them not being straight forward, I have learned a lot and I do thank them for that.
This may come off to some of you as venting. But, honestly I'm in my last semester in college beginning my career in the real world and I'm looking for positive guidance and look forward to seeing the vision having my personal professional portfolio of investments.
Looking forward to hearing from all of you! Thank you in advance!
@Jose Reyes why are you going to hard money to rehab properties that you own free and clear? If they are worth more than ~$70k you can look into a cash-out refinance from a regular bank with nice low interest rates.
@Bryan O. I tried everything to avoid using a hard money lender. Reason why I could go to the banks is 1. my credit is about 630, but my in coming income isn't where I want it to be because of college and it isn't sufficient enough to their standards. 2. I'm working with a partner who has terrible credit but their income is good since he's a police officer and engineer for the marines and that didn't satisfy them either. Plus the banks told me in order to refinance the properties they would have to be habitable and that is not the case with our properties because they were gutted and re-framed.
If you have any other way I should be going about this, please I'm all ears!
Hi @Jose Reyes ,
Just throwing out some thoughts.
1) Credit cards for home depot/lowes etc give you some of the rehab cash (assuming you are doing the work yourselves).
2) Sell one and use the money to rehab the other. If the cost of the money/time is more than the value of a single property is may be beneficial to just liquefy the less desirable one.
Just some thoughts and good luck!
@Mike Cumbie Thank you for your reply!
I've went the credit card route and wasn't successful, unfortunately. But, you make a very good point with selling the less desirable one, but the amount I estimate we would get wouldn't be sufficient enough to fully rehab our second property.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.