All Forum Posts by: Jordan Crosby
Jordan Crosby has started 1 posts and replied 4 times.
Post: Finding private money lenders
- Flipper/Rehabber
- Columbus, OH
- Posts 4
- Votes 1
Yes I agree, for buy and holds that is the best route. Having the ability to make offers on a property that can close 10 days later using Private Money is hard to compete with. No sellers want to deal with banks.
Originally posted by @Mike Malloy:
Buying with private funds and refinancing with conventional always looks pretty good. Even better if you can do some rehab and get the value up in between.
Post: Finding private money lenders
- Flipper/Rehabber
- Columbus, OH
- Posts 4
- Votes 1
Your situation seems VERY similar to mine. In the fall I was talking with banks to get a LOC against my rentals as well. We decided it’s best to wait until early 2019 to get that all started. But I agree, having both a LOC and Private Money available would be ideal.
Originally posted by @Jake C.:
@Jordan Crosby It really depends on what your portfolio looks like. Do you own rentals that have equity? If yes, try to leverage these with a local bank to get a revolving LOC.
I was facing the same decision not too long ago and spent a lot of time weighing out the pro's and con's.
My conclusion, and this was a conclusion based on my own situation, was that both hard money and conventional debt should be present in my toolbox.
I was able to find a bank that gave me a revolving LOC at 1% over prime, collateralized by a portion of my rental portfolio. I obviously want to use this as much as possible as it is cheaper and simpler than using hard money.
I simultaneously built a relationship with a local hard money guy so that if/when I run into deals that won't fit on my LOC, I can still execute.
Bottom line: If you can, get an LOC collateralized by equity in your properties. Short of that, use hard money.
Post: Finding private money lenders
- Flipper/Rehabber
- Columbus, OH
- Posts 4
- Votes 1
That’s kind of what I was assuming but I didn’t know if anyone could make a strong case for conventional lending.
Post: Finding private money lenders
- Flipper/Rehabber
- Columbus, OH
- Posts 4
- Votes 1
I’ve been flipping homes in Columbus, Ohio for about 2 years now. All using my own cash. However, I’ve realized I need to start leveraging my cash to maximize the amount of deals I can do. I am forced to pass up a lot of very profitable deals because my cash is tied up in the flips I’m working on at the time.
So I would like to know, for your first few financed flips, would it be best to go through a bank and get a conventional loan or take the time to find a PML who will want a higher % but continue to finance deals in the future?
Note: Credit scores aren’t an issue. I’m easily able to get approved for conventional financing. This is purely asking which type of lending you believe is the best route.