Private financing/Hard money!

How should I go about finding a hard money lender that will fund a deal that is not in the same state. If the deal is good enough will I have to have some skin in the game?

Just find a national rehab lender that lends in all states, or at least the state the property is in. check out the link on the lefthand side of these pages for lists of HML.

Even if you’re deal is strong, most HML want you to put down something, whether they call it a fee, earnest money, DP money, whatever, you’re probably going to need something, good luck.

I’m looking for equity partners and/or people who would like to earn more for their money. I have a deal going. Please contact me at


Find anyone? I would like to find a source with 100k-200k with 8% return over a 5-7 yeard period.


You can certainly find someone that will work with you, but you’ll have to have some risk in the matter or just sell them the deal. Why must the person be out of state?

Typically hard money is arranged in which the lender will agree to fund up to 50-65% LTV. Interest rates will be anywhere from 9-16% and lender points will be 1-5 points. These are the typical rates I have seen in my experience structuring deals for our investors who are interested in investing in rehab related projects or for an commercial real estate asset backed deal.

Though lets say you find a deal that is being offered at the exact amount of the LTV the HML lender wants to finance - (50-65%), the HML will want to see 10-20% of “skin in the game” as cash on the deal. This 10-20% will be based on the purchase price.

Though again our investors will fund deals, depending on the following 1) location, 2) equity in the deal, 3) exit strategy, 4)comparable in the region for completed/repaired residences.

Yeah it is very difficult to find something that is truly at 65% LTV when virtually all the comps in the area are REOs that are selling for near list price.

If banks are selling homes all day long at 50,000k , they usually don’t want to sell it to you for $32,500.

I think a lot of people have the idea that they can easily get a Hard Money Lender to put up all the money…but it seems like that is very rare these days. .especially if the HML doesn’t lend on ARV or make rehab loans.

It seems you end up putting the same or more money down usually using a HML than going through traditional financing …but the advantage of hard money is that they aren’t as picky about condition and they can move much quicker…