I’m a new investor looking to purchase, rehab and sell property on a fulltime basis. Looking for a reliable hardmoney lender that doesnt require alot of red tape & will fund 70% arv. Credit score fair - poor and no active income at this time. I have a deal that can profit $50k-$100k but not under contract yet. Can anyone help me or know anyone that can?
Do you have cash reserves—how do you intend to fund the cost of rehab while waiting for reimbursement?
I would need to know more about the property and your circumstances before I could be certain if I could assist you.
No i dont have any cash reserves, i’m basically starting from scratch. credit is a 594 but they say credit & income shouldnt play a factor in rehab lending but ive found out thats not the case. The property is selling for $316k & comps are averaging at $531k. Its a 5bed, 4 bath in a mid - high income community. 4,272 sq. ft.
Not all equity based lending programs quantify and take into account things like credit score and or employment/income, but all of them do require cash reserves because you are expected to self fund rehab until the work has been inspected by the HM lender and you are reimbursed for the same.
You might want to consider wholesaling a few deals to build up your cash reserves and then reapproach this business.
Scott is 100% right. Also many lenders are moving away from equity or asset based lending. Specifically in Illinois the average time to foreclosure after filing the default notice is 10 months. So lenders are growing more wary of borrowers that are a “flight risk” if you will.
To build reserves, you can look to bird-dog, wholesale or even bring in a money partner on this deal. Try scoping your local REI Clubs and seeing what might come from that.
Hope that helps! Good luck!