I have 3 deals on contract that I need hard money loans for. I would be picking each for the 3 up for $100,000. The ARV on all 3 varies from $200,000 to $275,000 according to my comps. Two are duplex, one is single family on 1.5 acres. All need very little in the way of rehabbing. Located in a very upscale city in MI. But for some reason I am having trouble finding the money. I find deals like this all day long as I have a huge network of customers that love to tell me their problems. Any ideas?
3 deals to get done and having trouble finding hard money
You may consider bringing in partners to help with whatever it is your lenders are asking for ie reserves, downpayments, credit etc…
You can compensate them by sharing profit or comming up with other options.
Michigan is at the top of the list of declining market states. Because of this many lenders are very leery of loaning on properties in Michigan. You might try local state banks for your funding because they are more familiar with the area and are more likely to take a chance on investment deals like the ones you have.
So what is your objective with these properties? Who do you mean by customers? Are you wanting to sell these properties?
Sounds like you have buyers you want to wholesale to. Any chance any of them would be a good buyer for a double close? There are lenders that will fund 100% of your purchase and closing cost as long as the you have a buyer lined up that can close the same day you can.
If you’re looking to rehab then sell or keep as rentals there are hard money lenders that provide financing for purchase, fix up, costs, and sometimes even payments.
Need to know about your credit/employment/income histories and liquid assets.
I am looking to fix up and sell or rent them out. As far as customers I own computer company and I hear customers complaining about forclosure all the time. So it is like deals being dropped in my lap. My credit score is around 600, I am self employed and have owned my business for the past 5 years. As far as liquid money I don’t have much laying around as I put everything I have right now into my computer business. I am activly looking for a hard money lender that will be able to help me grow my flipping business. I have friends that are repo men, and divorce lawyers so I get info on possible sales all the time. I just need the money support behind me to get the deal done.
With lower scores and no cash for working capital it’s going to be hard to get financed for rehab loans. Rehab lenders do not advance the money out of escrow. It’s there for reimbursement of work completed and inspected. So you put out some then get that back to start the next phase.
You should either consider doing wholesale deals to get your capital built up or seek out private investors in your local area.
If your finding the deals, that’s the important part. I’d focus on how you can unload those properties. Meaning, once you hear about a deal, start looking for an investor who can come in and buy that property. Assign the contract or do a double close.
The state of MI is tough for financing, even hard money lenders. Hard money lenders want to make sure that you have an exit strategy. With soft markets happening nationally HML really are starting to make sure their clients would qualify for a refi. I dont think you’d be in a position to qualify for any type of refi though.