About hard money lending

Fresno, California
Starting Out
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About hard money lending

Neetu Patil
Member since 2023 · 31 posts · 10 votes

I'm new to real estate investment and am considering hard money lending for quick and flexible financing. I'd appreciate recommendations on reputable hard money lenders, especially those familiar with assisting newcomers. Your insights would be invaluable as I navigate this new terrain.

Thanks in advance

5Reply
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Ryan Davies
Investor · Salt Lake City, UT · Member since 2019 · 339 posts · 126 votes
3y

Here's how most work. Let me know if you have questions.

  • Rates: 10% to 14% (Most Deals are 12%)
  • Terms: 1 Day - 24 Months (Most Deals are 6 months)
  • Fees: 3-5 points(%) of loan amount (Most Deals are 3 points(%)) - $2500 minimum fee
  • Minimum Loan Amount: $75,000
  • Max Loan: 65-70% of After Repair Value(ARV)
  • 100% Rehab Financing Available (Most Deals require 10-20% of purchase price down or cross-collateral)
  • Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 7-10 business days)
  • NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.
9Reply
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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    3y

    Don't - start with conventional 

    House hack if you can

    0Reply
  • Ryan Davies
    Investor · Salt Lake City, UT · Member since 2019 · 339 posts · 126 votes
    3y

    Here's how most work. Let me know if you have questions.

    • Rates: 10% to 14% (Most Deals are 12%)
    • Terms: 1 Day - 24 Months (Most Deals are 6 months)
    • Fees: 3-5 points(%) of loan amount (Most Deals are 3 points(%)) - $2500 minimum fee
    • Minimum Loan Amount: $75,000
    • Max Loan: 65-70% of After Repair Value(ARV)
    • 100% Rehab Financing Available (Most Deals require 10-20% of purchase price down or cross-collateral)
    • Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 7-10 business days)
    • NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.
    9Reply
  • Scott E.
    Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
    3y

    I just googled "hard money lender Fresno, CA" and about 20 options popped up.

    I'd spend an afternoon calling around and talking with loan officers. It's going to be tough to find somebody to lend on a deal if you have zero experience. But you'll learn a lot by calling around and it will help you understand what you need to do to "fit in their box" in the future.

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

    Are you looking to invest in CA or out of state.  In many states I get people 90%/100% even for beginners, CA is not one of them however has investing in that state is often pricey and lengthy timeline wise.

    In smaller markets between the ohio valley and the colorado rockies, there are pockets where newbies can sneak into the game for cheap and for quick.  I've opened up a few of the markets and have gotten a few BP members here in their first deal and go them started.  Hard to start in Cali.  Cali and Florida are states to break into after:

    1) You've made some money

    2) You've gained some experience

    2Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    3y
    Quote from @Neetu Patil:

    I'm new to real estate investment and am considering hard money lending for quick and flexible financing. I'd appreciate recommendations on reputable hard money lenders, especially those familiar with assisting newcomers. Your insights would be invaluable as I navigate this new terrain.

    Thanks in advance


     There is a big difference when it comes to hard money lenders. There are those that will tell you they can do something up front, then proceed to take 45 days to close and ask for more documentation than a Fannie and Freddie loan.

    Then there is those that act as private money and can close in 5 days! There are 2 that I use in the Ohio space, Ill DM you!

    3Reply
  • Neetu Patil
    OP
    Member since 2023 · 31 posts · 10 votes
    3y
    Quote from @Steven Foster Wilson:
    Quote from @Neetu Patil:

    I'm new to real estate investment and am considering hard money lending for quick and flexible financing. I'd appreciate recommendations on reputable hard money lenders, especially those familiar with assisting newcomers. Your insights would be invaluable as I navigate this new terrain.

    Thanks in advance


     There is a big difference when it comes to hard money lenders. There are those that will tell you they can do something up front, then proceed to take 45 days to close and ask for more documentation than a Fannie and Freddie loan.

    Then there is those that act as private money and can close in 5 days! There are 2 that I use in the Ohio space, Ill DM you!

    Thanks good points to know.  Much appreciated. Thanks 

    0Reply
  • Neetu Patil
    OP
    Member since 2023 · 31 posts · 10 votes
    3y
    Quote from @Mike Klarman:

    Are you looking to invest in CA or out of state.  In many states I get people 90%/100% even for beginners, CA is not one of them however has investing in that state is often pricey and lengthy timeline wise.

    In smaller markets between the ohio valley and the colorado rockies, there are pockets where newbies can sneak into the game for cheap and for quick.  I've opened up a few of the markets and have gotten a few BP members here in their first deal and go them started.  Hard to start in Cali.  Cali and Florida are states to break into after:

    1) You've made some money

    2) You've gained some experience


     You are absolutely right, my mind has been telling me this for long. I live in Cali. Thanks for the guidance.

    0Reply
  • River SavaPro Member
    Lender · USA · Member since 2022 · 1k+ posts · 1k+ votes
    3y

    Hey Neetu - I would be happy to point you in the right direction. Check your BP inbox!

    [email protected]
    0Reply
  • Ryan Stuckey
    Lender · Member since 2022 · 217 posts · 148 votes
    3y

    There are a few good hard money lenders that can deliver, but Longhorn Investments is probably the only one offering up to 100% on the purchase price (and 100% on rehab of course). Even without previous experience as long as the numbers work. Over 15 years and 7000 closed loans and operating in several states now - rock solid reputation.

    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    3y

    @Ryan Stuckey

    any plans to expand into PA?

    0Reply
  • Ryan Stuckey
    Lender · Member since 2022 · 217 posts · 148 votes
    3y
    Quote from @Nicholas L.:

    @Ryan Stuckey

    any plans to expand into PA?

    Unfortunately, not at the moment. Several states have opened in 2023 and that is likely it for now.
    0Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    2y
    Quote from @Steven Foster Wilson:
    Quote from @Neetu Patil:

    I'm new to real estate investment and am considering hard money lending for quick and flexible financing. I'd appreciate recommendations on reputable hard money lenders, especially those familiar with assisting newcomers. Your insights would be invaluable as I navigate this new terrain.

    Thanks in advance


     There is a big difference when it comes to hard money lenders. There are those that will tell you they can do something up front, then proceed to take 45 days to close and ask for more documentation than a Fannie and Freddie loan.

    Then there is those that act as private money and can close in 5 days! There are 2 that I use in the Ohio space, I'll DM you!

    I'd like to know those guys too please send them my way for clients 
    [email protected]786-494-6766
    Section 8 Launch52 Reviews
    WebsiteView Page
    0Reply
  • Neetu Patil
    OP
    Member since 2023 · 31 posts · 10 votes
    2y
    Quote from @Ryan Stuckey:

    There are a few good hard money lenders that can deliver, but Longhorn Investments is probably the only one offering up to 100% on the purchase price (and 100% on rehab of course). Even without previous experience as long as the numbers work. Over 15 years and 7000 closed loans and operating in several states now - rock solid reputation.


     Do you offer lending services for california properties as well?

    0Reply
  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 667 votes
    2y
    Quote from @Neetu Patil:

    I'm new to real estate investment and am considering hard money lending for quick and flexible financing. I'd appreciate recommendations on reputable hard money lenders, especially those familiar with assisting newcomers. Your insights would be invaluable as I navigate this new terrain.

    Thanks in advance


    What type of deal are you seeking that would require hard money? Typically you would still be required 20% as first time investor for most HMLs and 100% of the Reno. You would of course be limited to the type of work done to the property. If you aren't seeking renovation loans and just buying turn key ready properties DSCR loans will be your best friend

    [email protected]860-538-3672
    ProAlpha Capital56 Reviews
    WebsiteView Page
    1Reply
  • Ryan Stuckey
    Lender · Member since 2022 · 217 posts · 148 votes
    2y
    Quote from @Neetu Patil:
    Quote from @Ryan Stuckey:

    There are a few good hard money lenders that can deliver, but Longhorn Investments is probably the only one offering up to 100% on the purchase price (and 100% on rehab of course). Even without previous experience as long as the numbers work. Over 15 years and 7000 closed loans and operating in several states now - rock solid reputation.


     Do you offer lending services for california properties as well?

    Sorry, no CA at this time. States now available for Longhorn Investments' 100% purchase and rehab program: AL, AR, GA, IN, MO, NC, NM, OH, TN, TX
    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    @Ryan Stuckey

    what are the experience and credit requirements for the 100% program?  and how many points does it cost?

    0Reply
  • Ryan Stuckey
    Lender · Member since 2022 · 217 posts · 148 votes
    2y
    Quote from @Nicholas L.:

    @Ryan Stuckey

    what are the experience and credit requirements for the 100% program?  and how many points does it cost?

    No experience required as the deal itself is most important. However, in a case like a first timer doing a large rehab out of state, that would get more scrutiny.

    We require 640 credit for base terms, although we will go to 600 credit with an upcharge on origination.

    Base origination is 2.99% on the first three deals, and after three completed deals in good standing, it goes to 1.99% in the Loyalty Program.
    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    @Ryan Stuckey

    OK, thanks for the info.

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    5d

    Happy to connect and shed some insight

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
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