Not sure if I’m in hard money territory just yet… I’m looking at picking up several multi-fams that need work, for a great price. Once repaired the buildings will have great cashflow. As my pockets are of the shallow kind I would need financing for the purchase as well as the rehab. From what I understand, with each building being more than 10 units, a commercial loan will cap at 80% LTV. Not certain that’s a possiblity as the buildings are currently vacant. FICO just took a hit due to recent closings. Would trying to secure conventional financing be a waste of time?
&, are there HML’s that assist investors who are buying to rehab and hold
Thanks for any assistance
every man is the smyth of his own fortune
Most HML’s work on 6 months to a year. I have found one private investor that is giving me 7 years with 12% interest but on small deals of around $20K each. There may be some out there but it will take some searching and the 14% interest will kill the cash flow. It would be better to use the HML and then refinance using conventional loans.
Hello, Tedjr is right. Hard Money may not be the way for you. He did make a point about private money investors. I work with some and their going to probably work better for you.
Tedjr it sounds like you need more investors to work with. 12% interest sounds high to me on $20K.
Thanks for the info. I’ll start looking for private investors…once purchased and rehab’d refinancing with a conventional lender should be more likely…