I found a heck of a wholesale rehab deal and I’m looking for a private money lender that will do a no money down loan for 70% of AVR plus 20k repair costs. Anyone have an idea of where I could find such a person?
If your wholesaling then just use a transactional lender. Theres very minimal qualifications. The money never really leaves the lenders hand. And you can get a proof of funds letter without even talking to anybody personally. Its all automated.
Typically you pay $2000 for under $150000, then it moves up to percentages.
But the only way you can use a transactional lender is if you do a back to back closing.
(You make the offer, offers accepted, you find a buyer, then you set up a closing date and figure in all costs including your cut, close , then repeat) I recommend finding a closing agent that has experience with this. Some of the transactional lenders post closing agents that have been used.
To find a good transactional lender just google it and search for the best ones. Shouldn’t take long.
That was a good question. Would it be best to use the Transactional Lenders that charge or one that doesnt?
I currently have a deal where I am going to need a transactionl lender. I have a deal worth $150K under contract for $50K. The rehab is about$10K. I am wholeselling the property for $60K, neting me $10K.
My buyer submitted an offer to me for $78K, with an owner carry of $18K for 12 months at 5% Int. The buyer is lining up funding through a HML and needs assistance with the down payment.
Is this a good deal to construct with a transactional lender? Would a HML allow me to create a $18K note for the buyer?
I recently read an article regarding a hard money lender that offers this kind of loan. You might want to try to search it in Google, I just can’t remember the company name. Also, I don’t know if the offer exists within your location so might as do a web search about it.