Hard Money Lender w) No Money Down?

Im looking for a Hard Money Lender that has a No Money Down requirement. i found dohardmoney.com but they dont serve Alabama.

Thanks for posting this Budd650!

Is this something you need immediately or are you getting someone lined up for deals you have coming up in your pipeline? The reason I ask is there are some great things you can do to raise private money (not hard money) but it does take a little bit of lead time.

For example, I got licensed with my state Division of Securities (it costs me about $100 per year) to be able to raise private money secured by a note and deed of trust (only here in Colorado) and I think it is a great idea for those that are serious about their real estate business and raising money to do the same in their state so they know the rules and what they are allowed to do to raise the private money and are legally allowed to do it.

Once you’re licensed in your state there are some great things you can do to raise all the private money you need in this environment where there are a lot of people looking for great investments like trust deeds (or mortgages if you’re in a mortgage state) that often pays a higher return and is secured by a real local asset and you don’t have to worry about looking over your shoulder and “staying under the radar”.

On the other hand, if you really just need a hard money lender, try your local real estate investor association. Those that are still active are going to be there. Hard money lenders that are doing no money down loans at this point are rarer than ever. Your best bet may be to talk to the ones you do meet (even if they insist on a down payment) and see if the deal is so compelling that they would consider doing it nothing down. Some may do it if the deal and your situation are compelling.

If you have the time though, I think you’ll find the time and energy invested in lining up private lenders for yourself is well worth it.

Do let me know how the search goes; I love hearing about people overcoming the odds and working at it until they succeed. I have a gut feeling this is going to be one of the stories where you become so passionate about finding one that you do find someone.

that is some awesome advice! newbies on this forum need to read every message you post up. thank you again for sharing your knowledge.

Thank you very much for saying that. I really do appreciate it and I am here to help.

I searched high and low for 3 weeks to get 100% financing and nothing. An awesome deal, small amount of money (maybe too small <50k).

They want skin in the game these days.

I bought the property and went all in, now I can’t get money for the rehab. No 2nds, no money left and scrambling for a private investor before rent is due.

Bottom line, if you NEED 100% financing, find it, don’t ever stick your neck out. A lot of people say when you find a great deal, the investors will come, not always the case.

Wish you the best, if you find 100% look me up please.

most hard money lenders will lend 65-70% of ARV (after repaired value), that is for the purchase and rehab. If the house is $60k, and your rehab budget is $15k, and the house appraises for $100k after repairs, they will loan you $70k, you will have to pay $5k at closing but will also want you to pay closing cost and insurance and have cash reserves.

Your credit will also come into play (or thats my experience), they want to make sure you pay your bills. Credit doesn’t necessarily have to be perfect, but with poorer credit the more reserves they might require.

I have closed 2 deals in the last 45 days that I paid closing cost and insurance, the property appraisal was enough to cover the purchase price and the rehab…thats about as close to no money down as you can get today

That is great insight Andy!

The other challenges that an investor may find when looking for a Hard Money Lender is being realistic on the True Value of the investment property. Truth be told this is the greatest problem facing an asset-based hard money lender especially when the prospective borrower cannot (or won’t) put any skin (money) into the deal and/or has poor cash-flow/net worth.

kinda overwhelming… this iz not for the weak!

Its available in al too, just depends on where and the deal. What r u interted in buying and what r values/ repairs?