Airbnb Cabin Project
Hello everyone! I am helping a friend find some lending for his cabin project. We’re located in Charlotte, NC. He’s an awesome contractor and has done a few remodels. Anyone interested in lending or able to provide some suggestions on where we could look to find some private lending and possible meet or speak to lenders? I’ve been telling him to try the Bigger Pockets forum since he’s had no luck finding lenders. Look forward to hearing from you all! He is able to provide all the specific details if needed.
Quote from @Dashawn Brown:
Hello everyone! I am helping a friend find some lending for his cabin project. We’re located in Charlotte, NC. He’s an awesome contractor and has done a few remodels. Anyone interested in lending or able to provide some suggestions on where we could look to find some private lending and possible meet or speak to lenders? I’ve been telling him to try the Bigger Pockets forum since he’s had no luck finding lenders. Look forward to hearing from you all! He is able to provide all the specific details if needed.
Welcome to BiggerPocket Forum!!
I don't have any personal recommendations, but I can point to a starting point.
I realize that what you are looking for is a private lender, and I am wondering if he can get a Federal Housing Administrator (FHA) loan or FHA 203k loan. Maybe he does not have good credit history and/or down payments (10% to 25%), but he might be able to qualify for FHA loan by paying lower down payment (as low as 3.5%). FHA is similar to a conventional loan, and FHA 203k loan is FHA loan plus addtional renovation costs is added to the FHA loan. He can contact a mortage companies and ask them about FHA loan.
Have you had any good luck using one of the tools in BP to find lenders? At the top of the BP website, there are tabs. For example, search for "Mortgage Lenders" under "Recommended Vendors." If I were you, I will call several places to get the best quote. I find it hard to call someone over the phone, but I get better at communicating what I am looking for as I make more calls. I would also recommend him to prepare to answer questions such as, how much are you looking to borrow for the property and for the renovations? How many % of down payment can you pay? Do you have a proof of the fund? What is your rough estimate of credit score? Have you lived in the current address for more than 2 years? Do you have bank statements? Do you have the two most recent pay stubs?
If he is into reading books, I would recommend reading two books; Investing in real estate with no (and low) money down by Brandon Turner and Raising Private Capital by Matt Faircloth.
If he is into podcast, then I would recommend listening to Private Money Explained: 5 Simple ways to Find Private Money Today (Part 2) and The Rookie’s Guide to Finding Private Money for Your Next Property.
Lastly, if I were his prevate lender, I would like to see how my investing will return, and I made this table that explains to my private lenders what they can expect from me (how much do you need to invest, how much interest do you get from the investment, and when do you get paid).
Good luck finding several quotes, and let me know how it goes!
Hey thanks a lot …..I am new to using this platform so I’m still learning the ins and outs thanks for the tips!
Quote from @Masashi Borges-Silva:
Quote from @Dashawn Brown:
Hello everyone! I am helping a friend find some lending for his cabin project. We’re located in Charlotte, NC. He’s an awesome contractor and has done a few remodels. Anyone interested in lending or able to provide some suggestions on where we could look to find some private lending and possible meet or speak to lenders? I’ve been telling him to try the Bigger Pockets forum since he’s had no luck finding lenders. Look forward to hearing from you all! He is able to provide all the specific details if needed.
Welcome to BiggerPocket Forum!!
I don't have any personal recommendations, but I can point to a starting point.
I realize that what you are looking for is a private lender, and I am wondering if he can get a Federal Housing Administrator (FHA) loan or FHA 203k loan. Maybe he does not have good credit history and/or down payments (10% to 25%), but he might be able to qualify for FHA loan by paying lower down payment (as low as 3.5%). FHA is similar to a conventional loan, and FHA 203k loan is FHA loan plus addtional renovation costs is added to the FHA loan. He can contact a mortage companies and ask them about FHA loan.
Have you had any good luck using one of the tools in BP to find lenders? At the top of the BP website, there are tabs. For example, search for "Mortgage Lenders" under "Recommended Vendors." If I were you, I will call several places to get the best quote. I find it hard to call someone over the phone, but I get better at communicating what I am looking for as I make more calls. I would also recommend him to prepare to answer questions such as, how much are you looking to borrow for the property and for the renovations? How many % of down payment can you pay? Do you have a proof of the fund? What is your rough estimate of credit score? Have you lived in the current address for more than 2 years? Do you have bank statements? Do you have the two most recent pay stubs?
If he is into reading books, I would recommend reading two books; Investing in real estate with no (and low) money down by Brandon Turner and Raising Private Capital by Matt Faircloth.
If he is into podcast, then I would recommend listening to Private Money Explained: 5 Simple ways to Find Private Money Today (Part 2) and The Rookie’s Guide to Finding Private Money for Your Next Property.
Lastly, if I were his prevate lender, I would like to see how my investing will return, and I made this table that explains to my private lenders what they can expect from me (how much do you need to invest, how much interest do you get from the investment, and when do you get paid).
Good luck finding several quotes, and let me know how it goes!
Starting with the first deal and private lending is hard outside of family and friends. It's about the deal quality, personal track record, and risk factors. An FHA203K is a great start and much easier to get than private lending starting out. Privat lending money finds you automatically if you're successful in the RE industry.
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Real Estate Agent South Carolina (#305372) and North Carolina (#305372)
Hi Dashawn,
I am not sure if you already found a lender but Jon Puente is awesome. He's also on BP so give him a shout. He will probably get flagged on this and even reach out to you. If you need an investor friendly realtor ever I'd be happy to help.
Is he going to build on raw land? Has he spoken to Carolina Farm Credit about a construction loan?
@Dashawn Brown From the airbnb deals I've closed, you would run into location issues. If its remote, then a local lender is your best best as most regional or nationwide lenders have population requirements for STR.
If you are looking for minimum down payment options, FHA 203k have a lot of red tape and require owner occupancy.
Best of luck and let us know what you find.
