Would a hard money lender lend to a newbie

Question

Hello,

I'm looking into purchasing my first investment property and would like to use hard money  or private money to finance the purchase if is possible for a newbie? would they even consider?  My back ground is construction so I am comfortable with the rehab process.

( I do have cash available, but would love to gain experience with leverage )

I am aware of the current market situation, so everything would be in the assumption of having a great deal in hand.

Thank you very much for your time, and all feed back is much appreciated.

Dave Spector · Answer

@Jonathan Chu: absolutely yes... for all the reasons my colleagues have stated. But as you mentioned, the best thing you could do to help yourself is find a deal well below market with equity built in when you purchase. This will give your lender more comfort... and perhaps spare you from having to put more money down.

Scott E. · Answer

With you being able to put some of your own skin in the game, you will be able to get a hard money lender even though you don't have experience with investing. The underwriters will like your construction background too.

Issac San Miguel · Answer

Agreed, as direct lender, we lend to first time investors. Cash is king, and rates are less favorable than those with experience.

Ultimately, loyalty and repeat borrowers have more negotiating room as time goes on.

Patrick Prunty · Answer

@Jonathan Chu

While each lender is different, and of course experience is preferred, everyone has to start somewhere right!  In my experience most lenders will consider lending to a 'newbie' as you refer to it.  There may be compensating factors, i.e. they could ask you for more down, they could charge you a higher fee or a higher rate, etc.  That said, if you have construction experience, and better yet, you have cash, then you should have no problem getting a hard or private money loan.

Jonathan Chu · Answer

@Dave Spector thank you

Jonathan Chu · Answer

@Scott E.thank you

Jonathan Chu · Answer

@Issac San Miguel thank you for your reply

Jonathan Chu · Answer

@Patrick Prunty thank you for your reply

Would a hard money lender lend to a newbie

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