I have “sidelined” several deals and am ready to invest in a few of my own. However, I have poor credit thus cannot obtain funding from traditional sources. I have researched HML’s and feel they will be valuable to my situation(as many of my proposed projects,with asking prices 30-50%ARV,will need rehab money as well). I have looked at the HML page for lenders in my area and did not come across any I felt could help.
How do I go about finding HML’s aside from internet searches, as they are not listed in phonebooks?
Also, I have heard of HML’s that do not even pull credit scores and will lend soley based on amount of equity in the home after repairs. Are these kind of deals realistic? I am in dayton, OH. Any relevant responses are welocmed and much appreciated, as the clock is ticking! Thanks!
You’re right on track with buying properties below 50%. This will work out well when using a hml. A typical hml will fund 70% of the after repaired value. With your projects there may be enough to fund the costs, payments, fix up, and purchase.
Hmls are not concerned with credit scores and will not verify income or assets.
There are several lenders that will fund nationwide.
You can also try your local newspapers - there should be averts in your sunday paper for example in the “Money to Lend” section.