I am looking at purchasing at a cash only auction in SC. I need a hard money lender or an investor capable of lending or investing $175K in the area. My plan is to turn it into a rental property and through research, I have found that the income potential in the area is about $30K per year. Any assistance would be appreciated.
There are many hard money lenders out there who are able to fund your deal…be cautious, however, that this is expensive money and typically, there are lots of ‘junk fees’ added to their profits in closing costs.
Personally, in nearly 400 transactions, I’ve rarely used hard money lenders…just a personal preference. I use private investor funds which can be structured inside or outside of a trust…either way works.
If you think about it…there are some 7 Trillion Dollars sitting in pension/ira funds which, if put into a ‘self directed’ plan, can fund your deals. Many existing pension/ira trusts already permit the funding of such transactions.
Doing it this way, it is a simple transaction and you can design the funding of the deal to have the best possible results for all parties.
All you have to do is ask! Start talking with folks and ask, “How much of your IRA is earning under 12%?” Or whatever % rate you plan to pay…the answer will always be ALL of my money is earning under 12%!! Then, you are in the middle of a presentation of the funding of your deal…present it and many will fund privately.
Hope this helps.