Hi i have found an private lender who is willing to lend 65%ltv. I want to buy this fixer-upper that is selling for 259900, my question is, it easy to get someone to lend the rest and take a 2nd? Thank you.
Your best approach would be to find a second private lender to lend you the remaining loan amount you need. If the numbers look good, you shouldn’t have any problem finding an investor.
Thank you do you know where i can search for them in live in northeren Va
My only thought is in this market, down and slow, do you really want to be borrowing more than 65%, and if so, how much more?
In this market you shouldn’t have to be spending more than 65% ltv anyway on a property. Since you already have a private lender in place… Scratch that deal… And find something else at 65% ltv where the numbers work and pass this other deal up… The last thing that we are short on now is available properties…
Property values are still on a downward trend in most areas. The good thing about this is that you’ll have no problem finding hard money. But hard money taking a second position is going to be tough.
I lent out money and took second position on a property. This was back in 2004 and the total for the 1st and 2nd was only 80% LTV. Today, the value of the property has fallen and the cushion has squeezed to 98% LTV. My position is not as great as it used to be. If the homeowner defaults on the first, my only protection is to buy out the 1st - hopefully through short sale and move myself to 1st postion on the property.
This is a common scenario among hard money lenders that took seconds a few years ago, so just to warn you that most out there will no longer put themselves there. I learned my lesson and my loan was a mere $22K!
There are many, many REIAs in the DC Metropolitan area. Start attending each of them and make contacts.
Chris