how to get a hard money loan and what is allowed?

Financing, Hard Money Lenders, Private Money
1

I having a tough time finding the answer im looking for. But for the most part there is a home in my area that i is resonably cheap, or atleast under its potential value, and i am trying to find if there are any hard money lenders who would give me $100,000 cash loan to purchase the home, but to make it a primary living space? I plan to fix it up and make it nice, but im only finding lenders who want you to purchase, fix the home, and sell the home in a 3 month or so timeframe. Im looking to purchse the home, and pay the lender until the home is paid off… Is that possible or am i over thinking the whole idea of a home not being able to get financing?

2

Tough and tricky situation. While it may be possible to use hard money to buy a primary residence, you still need to be able to refinance out (or have a trusty friend buy it in a company and sell it to you at cost). There are also other conventional loan programs that allow you to finance the repairs (HomePath, 203k, TexVet, VA, etc.). You may want to look into those…

You don’t want to get into a hard money loan and pay 12-14% interest for any longer than you have to. Just make sure you clarify your intentions upfront with a lender that is reputable. DO YOUR HOMEWORK!

3

most hard money lenders won’t touch a primary residence because the eviction process is much more involved than a rental property

4

Conventional banks are just not lending right now. There are a lot of good commercial properties in Las Vegas to purchase–great NOI, CAP rates 8% or higher, but sellers want cash deals. I have over 10 years experience in managing and leasing commercial properties, but not enough capital at this time to purchase one. How can I get hard money lenders to invest in these properties?

5

…Conventional Banks are not lending on Commercial Properties. Especially in Las Vegas. I had beads on 8-12 unti apt complexes, but couldn’t get commercial financing, so I have stuck with picking up residential Multifamilies. I found also that most HML’s had a floor of $2MM for commercial properties, and then you still need 20% down. But there’s A HUGE VOID in the $200k - $2MM financing opportunities.