Hard Money Loans Advice

Greetings! I am in the Columbus, OH area. I am seriously considering investing in real estate for myself. I have located many hard money lenders and the majority will loan up to 65% of property value. Does the other 35% have to be in investor funds or how do you make up the difference to equal 100%?

Any advice is greatly appreciated.

Thank you in advance.

They are willing to loan 65% of LTV.
So it depends on the deal.
Let’s say ARV is 100k.
This means if you find a property for 50k and put 15k into it for rehab.
Your HML will lend you the 65k to purchase and rehab.
You are only out of pocket closing costs plus HML fees/interest.

In some situations, you may be able to make a purchase as described by Pete. If rehab purchasing is not what you are referring to and for general guidelines, I would say that the balance of your funds to close may come from any acceptable source to your Hard Money Lender. This may include funds from family, friends, other lenders, and/or investors who may be taking a partnership interest in your project. If you are looking to purchase your first property, it may be a good idea to line up your down payment funds as well as carrying cost funds (covering your monthly payments, etc) to be sure that when you lock in your transaction, you are setting yourself up to succeed and not to fail by not planning properly. Good Luck!

Very good advice pete,