All Forum Posts by: Jacqueline Wright

Hi Matt,

Here are a few ways to find a partner for your 16-unit deal without relying on family/friends:

Real Estate Investment Groups (REIGs) – Join local or national groups where investors look for opportunities.

Networking Events/Conferences – Attend real estate events or conferences to meet potential partners.

Private Money Lenders & Syndicators – Look for investors or syndication groups willing to partner for funding.

Real Estate Brokers/Agents – Brokers can connect you with investors seeking deals.

Online Platforms – Use platforms like BiggerPockets, Fundrise, and CrowdStreet to find investors.

Investment Clubs – Find local real estate investment clubs to meet interested partners.

Crowdfunding Platforms – Consider platforms like RealtyMogul to raise capital.

Accredited Investors – Reach out directly to investors through LinkedIn or your network.

Be sure to choose a partner with complementary skills, financial stability, and experience in multifamily investing. Clear agreements are key!

Let me know if you need more help!

Hi Samuel,

It sounds like you're diving into the VRM and Vendee programs! Generally, when you're purchasing an REO (Real Estate Owned) property through VRM and Vendee, the down payment typically varies between 5-15% for investment properties, as you mentioned. The interest rates can fluctuate based on the lender, your credit score, and the loan type, but you're correct in noting that no one can provide a specific rate without more details.

For investment properties, the down payment may lean closer to the higher end of that range (around 10-15%) rather than 5%. Additionally, since you're not occupying the house as a primary residence, it might affect the loan terms slightly, making them a bit more restrictive.

As for your mortgage, it's great that you’ve worked out the operating expenses and rental income projections, but the monthly mortgage will depend on a few factors:

1. **Loan Amount**: This is based on the purchase price minus your down payment.

2. **Interest Rate**: Rates will fluctuate, but you can use a mortgage calculator with a range of rates to get an estimate. Typically, you’ll see rates between 4%-7% for investment properties, depending on your credit and the lender.

3. **Term Length**: 15-year or 30-year options are common, with the 30-year loan providing lower monthly payments.

If you have a specific property in mind, I’d suggest reaching out to a lender who specializes in the VRM or Vendee programs. They can give you a more tailored quote based on the specifics of your deal.

Would you like more guidance on how to approach this with a lender or additional details on any specific part of the process? I'd be happy to help!

One of the biggest challenges I've seen in funding real estate deals is finding the right lender who aligns with specific project needs—whether it's fix-and-flip, BRRRR, or long-term rentals. Many investors struggle with rigid lending criteria, high interest rates, or difficulty securing gap funding.

A workaround I've found effective is building strong relationships with private money lenders and offering flexible terms that create win-win scenarios. This opens up more creative financing options, like second lien positions or equity partnerships, especially when traditional financing falls short.

What about you, Terry? Are you focusing on any particular types of deals right now?

Hey Kevin! 100% financing on fix and flips can be a game-changer, especially for investors looking to maximize leverage. Here are a few scenarios where I've seen this happen:

💰 How 100% Financing Works:

Cross-Collateralization: If the borrower has equity in another property, lenders may use it as collateral to cover the gap.

Experienced Investors: Some lenders offer 100% financing to seasoned flippers with a proven track record, often with a higher interest rate or profit share.

Gap Funding + Hard Money: Pairing a traditional hard money loan (e.g., 70-90% LTV) with a private money lender (PML) to cover the rest, including rehab costs.

🚩 Red Flags to Watch:

High Fees: Some 100% programs charge hefty origination or hidden fees.

Equity or Profit Share: Make sure you’re clear on what you’re giving up—equity or a cut of profits might be required.

Risk of Overleveraging: 100% financing leaves little margin for error if your ARV or rehab costs run over.

✅ Pro Tip:

If you’re offering or working with 100% financing, due diligence is crucial. I’m a PML myself, and I always advise setting clear terms, timelines, and exit strategies to keep deals smooth.

Have you used this program yet, or are you testing the waters? Curious how it’s structured!

Austin, great question! Finding private money lenders (PMLs) is all about relationship-building and compliance. Here’s what you need to know to stay legal while scaling access to capital:

1. SEC Rules & Compliance (Avoid Solicitation Violations)

The SEC (Securities and Exchange Commission) has rules around raising private capital. You cannot publicly advertise or solicit investments unless you’re working with accredited investors under SEC exemptions.

🚨 What’s Allowed:

✅ Networking – Talking to individuals in real estate groups, RIAs, investor meetups, and word-of-mouth referrals.

✅ Providing Education – Sharing market insights, case studies, and general investment concepts without making a direct "ask" for funds.

✅ One-on-One Meetings – Building relationships before discussing specific deals.

🚫 What’s Not Allowed:

❌ Cold Flyers & Mass Solicitations – Dropping off flyers in offices can be seen as unregistered solicitation. Instead, build relationships first.

❌ Public Social Media Posts Seeking Investors – You can discuss deals, but you can’t post “I’m looking for investors for X deal” unless working with accredited investors under Reg D 506(c).

2. How to Find Private Lenders (Without Breaking the Rules)

🔹 Investor Networking Events & Meetups

Join real estate meetups, BiggerPockets events, and private lending groups.

Attend local Chamber of Commerce or business networking events.

🔹 Connect with Industry Pros

CPAs, financial advisors, real estate attorneys, and self-directed IRA custodians have clients looking for passive investment opportunities.

Partner with them to educate their network about real estate lending.

🔹 Use LinkedIn & Facebook Groups (Private Conversations Only)

Engage in real estate investing discussions to build credibility.

Once you connect, move to private calls/Zoom meetings before discussing deals.

🔹 Word-of-Mouth Referrals

Your past lenders, partners, or other investors may introduce you to new PMLs.

Always ask for referrals after a successful deal.

3. Setting Up Calls & Zoom Meetings the Right Way

Once you find potential lenders, keep it compliant:

✅ Educate first – Share how private lending works before discussing deals.

✅ Talk terms, not deals – Discuss general loan structures, interest rates, and process.

✅ Build a lender list – Pre-vet lenders before bringing them deals to avoid public solicitation issues.

4. Pro Tip: Structure It Like a Business

To avoid legal headaches, consider:

✔ Creating an investor questionnaire to document interest levels.

✔ Using a PPM (Private Placement Memorandum) if pooling funds for multiple deals.

✔ Consulting a securities attorney for compliance if raising funds regularly.

Peter, great to see you're diving into real estate investing! DSCR lenders can work with newbies, but there are some key things to keep in mind:

Why Some DSCR Lenders Require Experience or a Co-Signer

✔ Risk Management – Lenders prefer borrowers with a track record of managing rental properties.

✔ Contractor Co-Signer – If you’re doing a value-add project, lenders want assurance that a qualified contractor is involved to avoid risk.

Options for New Investors

1. DSCR Loan (But Choose the Right Lender) ✅

✔ Some lenders don’t require experience (look for those that allow first-time investors).

✔ You’ll likely need 20-25% down and a strong rental projection to qualify.

✔ Higher rates than conventional loans, but no personal income verification required.

2. Hard Money Loan (Great for Fix & Flip or BRRRR) 🏗

✔ Easier to qualify for as a newbie.

✔ Funds purchase + rehab costs (usually 70-75% ARV).

✔ Short-term (6-12 months), then refinance with DSCR.

3. Private Money (Best for Flexibility) 💰

✔ You set the terms—no underwriting hoops.

✔ Higher rates, but no experience requirements.

✔ Can structure with interest-only payments or equity split.

Best Approach for You?

📌 If you're buying a rental and want long-term financing → Find a DSCR lender that allows first-time investors

📌 If you're flipping or doing BRRRR → Hard money or private lender first, then refi into DSCR

📌 If you need max flexibility & no underwriting headaches → Private lender (but vet them carefully!)

Charlotte, with an 800+ credit score and $60K down, you have several financing options that could work better than FHA. Here's a breakdown:

1. Conventional Loan (Best for Long-Term Savings) ✅

✔ Lower interest rates than FHA

✔ No upfront MIP (Mortgage Insurance Premium) like FHA

✔ 20% down avoids PMI, but you can go as low as 15% for investment properties

✔ Best for long-term hold & cash flow

2. FHA Loan (Best for House Hacking) 🏡

✔ 3.5% down option (keeps more cash for reserves)

✔ Must live in one unit for at least 1 year

✔ Mortgage insurance increases costs

✔ Good for maximizing leverage if you want to save cash for future investments

3. DSCR Loan (Best for Scaling Portfolio) 💰

✔ Approval based on rental income, not personal income

✔ Typically 20-25% down

✔ Higher rates, but no income verification

✔ Great if you want to buy more properties quickly

4. Portfolio Loan (If Planning Multiple Investments) 🔄

✔ Lenders consider future investments

✔ Can get flexible terms

✔ Good for long-term real estate investing goals

What’s Your Strategy?

📌 If you want to house hack: FHA makes sense

📌 If you want long-term savings & better rates: Conventional 20% down

📌 If you want to scale quickly: DSCR or Portfolio Loan

Yes! While most DSCR lenders require 20-25% down, some allow lower down payments under certain conditions:

1. 15% Down DSCR Loan

✅ Some lenders allow 85% LTV (15% down) with strong DSCR (1.2+), good credit (700+), and reserves

✅ Higher interest rate compared to 20% down

✅ May require prepayment penalty

2. 10% Down DSCR Loan (Rare & More Expensive)

✅ Available for experienced investors with strong financials

✅ Often requires higher reserves (6-12 months of PITI)

✅ Could involve seller concessions or second lien financing

3. 0-10% Down with Creative Financing

🔹 Seller Carryback: Find a seller willing to carry a second mortgage for part of the down payment

🔹 Cross-Collateralization: Use equity in another property instead of cash down

🔹 Gap Funding / Private Money: Partner with a PML for the down payment

Yes! You can use IRA funds for a down payment on an investment property, but you need to structure it properly to avoid penalties. Here are a few ways to do it:

1. Self-Directed IRA (SDIRA) – Best Option

✅ Roll over your Traditional IRA into a Self-Directed IRA (SDIRA)

✅ Buy the property directly through the SDIRA (you can't personally own it)

✅ All income & expenses must flow through the IRA—no personal benefit until withdrawal

📌 Rules to Follow:

You can’t use it as a personal residence (strictly investment)

No "self-dealing" (you or family members can’t personally work on or live in the property)

Loans must be non-recourse (no personal guarantees)

2. IRA Loan (Non-Recourse Loan)

Some lenders specialize in non-recourse loans for IRAs

The IRA itself secures the loan, but expect a higher down payment (35-50%)

3. 60-Day Rollover (Temporary Option)

You can withdraw funds from your IRA tax-free for 60 days

If you return the funds within 60 days, no penalties

Risk: If you don’t replace the money, it’s taxed as income + 10% penalty (if under 59½)

4. Roth IRA (If You Have One)

You can withdraw contributions (not earnings) tax- and penalty-free at any time

Great if you’ve contributed a lot over the years

Hey everyone,

I’m both a Private Money Lender (PML) and a real estate investor, and I’ve been seeing a lot of questionable "lenders" popping up online. I want to make sure new investors don’t get caught in a scam, so I’m curious—what red flags do you look for when vetting a PML?

Here are some warning signs I’ve come across, but I’d love to hear your experiences:

1️⃣ Upfront Fees – Are application, due diligence, or "insurance" fees ever legitimate?
2️⃣ No Phone Call or Verification – If they refuse to hop on a call, is that an automatic red flag?
3️⃣ Too-Good-to-Be-True Terms – 100% financing, super low rates, no credit check… is this ever real?
4️⃣ Unverifiable Business – No website, no reviews, and only a generic Gmail/Yahoo email?
5️⃣ Pressure to Move Fast – Trying to get you to wire money or sign contracts without due diligence?

As someone who lends and also borrows private money, I know how important trust and transparency are in these deals. Have you ever come across a scam? What were the warning signs?

Looking forward to your insights!