All Forum Posts by: Marnica Jeanpierre

Can you use private money or hard money lenders for this? Or are they not willing to do this? Also, what are the plans, are you going to sell after rehab, or rent?

I plan to sell after rehab. Well possibly hold one for Airbnb or a rental unit. I’ve tried a few hard money lenders and they wouldn’t fund the rehab only

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New Orleans, Louisiana

I have no issue with being a personal guarantee, i just didn’t want it to report on my personal credit and kill my debt to income ratio. I have no mortgages reporting on my personal credit, but I’ll take your advice. That’s probably the easiest route to take being that I do have the credit score

1 Vote

New Orleans, Louisiana

Quote from @Steven Foster Wilson:

Quote from @Marnica Jeanpierre:

Hi everyone , I purchased two homes cash last year, and the homes need full rehabs. I do not have the funds to complete the rehabs , and all the lenders I’ve researched will not fund the rehab money. They are only willing to fund the entire deal purchase price + rehab. I didn’t realize that purchasing the homes with my own money would create such a hassle for me. Can anyone recommend a lender that is willing to fund rehab money only ? Or is that not a thing . My credit score is over 800, but I would rather not use my personal credit if possible . Any recommendations

I also like the idea of private money. You can build a relationship with them and let them know that you are trustworthy and it is worth their investment. I did that with my cousin. I was trying to get her warmed up to investing thus she just funded the rehab. I would not pay her the interest on her money until I sold or refinanced the property which I put a deadline of 6 months. All went well, she got her 12% interest and I gained a new private money investor.

I reached out to a couple family members for help. They don’t know much about real estate so they didn’t feel comfortable lending the money, which is understandable. I’m gonna go down to New Orleans and speak to a few local banks, if all else fails I’ll either sell one of them, or use my personal credit cards which is something I genuinely didn’t want to do. Thanks for your input

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New Orleans, Louisiana

Quote from @Bob Willis:

Can you use private money or hard money lenders for this? Or are they not willing to do this? Also, what are the plans, are you going to sell after rehab, or rent?

Most of the hard money lenders I’ve spoke with only want to fund the entire deal. Being that I already own the homes , they arr basically telling me to pull cash from my credit cards

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New Orleans, Louisiana

Quote from @Marty Boardman:

Why not sell one of them and unlock the cash needed to rehab the other?

If your numbers are solid on both deals you should be able to find a local bank to fund the rehabs. Can you provide a potential lender/investor with proof these deals are profitable (i.e. comps, rehab estimates, photos, videos)?

The numbers are very solid which is why I didn’t think it would this hard to find the rehab without applying for a personal loan. I will try local banks in the area , if all else fails I’m willing to sell one of the properties as well. I just wanted to get my feet wet, but I’m not realizing I should’ve had a more thought out plan for funding

1 Vote

New Orleans, Louisiana

Quote from @Cory J Thornton:

@Marnica Jeanpierre -

- Talk to local banks. Explain what you want to accomplish, then let them tell you what products they have that fit your situation. Big banks don't have nearly the flexibility as little banks.

- There are loan products where you can get a construction loan based on the ARV of the property and then roll that loan into long term debt. It happens all the time, but usually, in my experience, through local banks.

- Commercial debt is very flexible and is worth exploring. Real estate is a business so business bankers are not scared to look at a property, the investment needed, the income potential, then make a loan.

- If all else fails, find a partner. If you are ever exchanging equity in a deal, try to gain more than just the persons money. Find someone with a network you don't have that will help you achieve your goals. Maybe that's a contractor, a more experienced investor, a banker ... someone with a skill set and a network that will help you grow and help the project improve its chances of success.

If you were in NC I would be happy to connect you with some great bank relationships, but I've got nothin to offer in the great state of Texas.

Best of luck on your investing journey. Keep us all posted on what you learn and how you move past this obstacle.

Thank you so much for this advice. The properties are actually in New Orleans and I think that’s what I’ll try next. I’ll reach out to some local banks in that area to see what can be done .

0 Votes

New Orleans, Louisiana

0 Votes

New Orleans, Louisiana

All Forum Posts by: Marnica Jeanpierre

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