All Forum Posts by: Stephen Sokolow

Can anyone recommend a hard money lender who does business in Indiana who will lend under $100,000. 

Hi everyone,

I just put my first deal under contract today after a long period of analysis to paralyses. I will explain the deal and then ask my question:

The property is located in South Bend, Indiana in the 46614 zipcode

3/2

1600 sqft

Under contract at $55,000

I have two GC's estimates for repairs at between $25,000-$30,000. Mainly cosmetic except for needing a new roof.

After closing cost I would be all in for $84,000.

Using my experience as a realtor I am seeing comps that would put my ARV at $110,000.

Question: I originally was going into the deal with a friend who has decided to back out. I am now left looking for hard money lenders willing to lend a majority of the funds needed to close. I have $6000 in private funds to put towards the deal. My question is should I pursue looking for hard money lenders at almost 100% ( yes I know that is virtually impossible) or should I start looking for private money investors and if so how?

Should I continue moving forward?

@Ian Price I only have read about them. I think part of the issue for an investor with that type of loan as far as I know is that they would have to live in the property. 

@Ian PriceWould La Porte and Porter county qualigy for the USDA loan?

@Immanuel Price Have you considered selling it as a land deal or building on spec?

@Ian Price also please keep me updated on what you find out. I am also looking into BRRR deals here in South Bend. I watched @Brandon Turner Brandon's recent webinar on it and it really got be moving on it and analyzing deals applying that technique. One of my questions that I had on it though after starting to look at deals is even if your initial private money or hard money loan is interest only for one year in which you are probably looking at 10% interest rate how do you pay the loan that first year? Most of the deals I have run the numbers on do not have enough cash flow to pay that.  What are you finding?

@Ian Price If you are considering South Bend area I would start by talking to First Source and maybe Notre Dame Federal Credit Union. I am not sure about the 75-80% LTV but give them a call. They are both and really take the time to understand the deal you are working on.

Try a company named Home Works. 

Welcome to Bigger Pockers @Kelly 

@Kelly Johnson Congratulations on the newer upcoming additions to your family. That is very exciting. I am an investor/broker here in South Bend. I am very familiar with the area and probably can be a good resource to your team. Please let me know if I can answer any questions you guys might have about the area and the market right now. 

Home Works