All Forum Posts by: Odie Ayaga

Is it a HELOC against your primary residence?

As others mentioned this sounds like a hard money deal. However, you may still have difficulty funding as, not only is it lopsided (rehab greater than acquisition), but the property itself is low value. You may find someone who will do it, but it may be considerably more difficult than if the numbers were flipped.

I can't think of anything off-hand. Unfortunately all the opportunities I can think of are for vets or active military. Do you have that in your background?

I know a company that can work with you in terms of getting unsecured business lines but if you're already under contract you may not get the lines in time to use them in these deals. Are these buy and hold properties?

Every hard money lender I've ever worked with works with first time investors. It sounds like you've just encountered the wrong lenders for your situation.

You may also want to talk to other lenders. The lenders I've worked with do not need a property to talk to you and give you an idea of what you'd be looking at. I've given approximate interest and points without a property with the caveat that the points could go up if it's a low price property. We could also provide approximate overall costs and monthly costs if, for instance, you wanted to know what you'd be looking at on a 100K purchase versus a 200K purchase. You're probably just talking to a lender who is trying to filter out potential tire kickers who don't ever end up buying.

Just to clarify above the down payment isn't typically on the combined acquisition and rehab it's only based on the acquisition.

Have you spoken to any hard money lenders yet? All of the ones I've worked with won't allow another lien on the property so they wouldn't accept seller financing.

My guess is it would vary lender to lender. They may be okay if there was no hardship proven. You'd be best off just asking your potential lender up front.

HI @Gerardo R Gonzalez thanks for your service! Are you talking in terms of learning opportunities or more like loans?