hard money lender or investment partner

I have found several excellent investment opportunities in preconstruction investment. The problem is I do not have earnest money deposit or downpayment cash reserves. I have excellent salary, cash flow ($2500/month) and excellent credit 780 but will take me more than a year to save enough downpayment. I am looking for a hard money loan of $60000 to invest in 3 properties. I am thinking this would be my best option but will appreciate any other better suggestions. My understanding is this is better than a money partner with 50:50 split?

If you do not have the funds needed to close the loan, cover your payments or any incidentals you are not ready to “purchase” properties just yet. Why don’t you take and Flip/assign these contracts out to an investor that has money and pick up an assignment fee, thus giving you money to do the next deal(s).

Just a thought.

You can do it! What are you trying to accomplish? I will help you create the plan. If you want it. Take it.

I agree with DHLC. If you do not have the funds and a back up reserve then you should not proceed. Many people think they can swing hard money, but then for a million different reasons, example: they can’t sell, they can’t rent, they can’t refinance, the contractor screws you, etc. find themselves in a bind. If it was a really good deal, and you do not care about anyones opinion and wish to go forward, then you could look into some credit card debt with 0% introductory rates, and perhaps a personal loan. Collateral in a personal residence might help. There is always construction to permanent financing which would carry the purchase, construction and interest reserve needed… Even with all of these things, you still need to be able to carry the debt load.

I do have the funds to close and make interest only payments on a hard loan of 60-70,000K. I have a good W2 salary with steady cash flow 2500-3000 after all debts are paid. That should easily cover interest payments on a hard loan. The 60 or 70K will be used to invest in preconstruction investment. Some of the preconstruction investments I’m currently looking at are in the federal Go-zone area with immediate tax benefits and equity. These preconstruction deals typically require a small earnest refundable deposit and a 10-20% downpayment at hard contract stage. No loan payments are required during construction stage. You can sell in 6 months-2years when construction is complete and will be no problem for me to close at that time. The advantage is that I get to buy now at first phase pricing and therefore have instant equity. You still have to choose area of investment and property after considerable due diligence which I have done. Alternatively I could get the downpayment from a friend, family or money partner-that would require 50:50 split

sounds like you could benefit from an unsecured line of credit. line amounts up to 75-100k for personal lines of credit. Minimum credit score of 700. You have the income.