TRYING TO FIND PRIVATE/HARD MONEY LENDERS FOR 2 GREAT DEALS IN IOWA

Financing, Hard Money Lenders, Private Money
1

I have been checking into private money lenders as well as hard money lenders. We have 2 great deals that would be horrible to pass up.

1st House:
$110,000 ARV
10,000 Rehab
57,000 Purchase Price

Rental income is great ($1000-$1,200/mo) in the area with great property growth in the area

2nd House:
$95,000 ARV
0 Rehab
70,000 Purchase Price
…with a person who wants to purchase on contract giving a $20,000 down payment

Does anybody have any idea how I could fund these deals? I have been researching private money/hard money lenders, but have no idea how to contact them. The names I have gotten of people who claim to be private money lenders have never sent me a reponse back when I emailed them asking if they did private money lending and requesting more information. Does anybody know how to reliably contact these people? We are new at this, banks we have contacted don’t do lending for investment properties. Please HELP!!

2

Hi,

Welcome to REI Club as a first time poster were here to help!

In the left side column is “Hard Money Lenders” in the “Investor Resources” section. Call all the companies who will loan in Iowa.

First house: Purchase price is 52% of your stated FMV.

$57,000 purchase price
$42,750 75% of purchase
$14,250 down
$10,000 Rehab

$24,250 For project plus closing costs, carrying costs and overhead.
Your going to run around $1k for monthly servicing costs and about $1.5k to close.
So with $30k out of your pocket you just bought an investment property!

Second House: Purchase price is 74% of your stated FMV.

$70,000 purchase price - $3.5k higher than I would ever buy it, as an investor I want 70% maximum of FMV
$52,500 75% of purchase
$17,500 down

$17,500 For project plus closing costs, carrying costs and overhead.
Your going to run around $1,150 for monthly servicing costs and about $1.8k to close.
So with $24k out of your pocket you just bought this investment property for about 3.5% to much!

This is figured with a minimum 4 month holding (Days on market) period to sell. Any further delay amounts to $1k to $1.15k per month in additional carrying costs.

But hey, for $54K out of pocket you own two (2) properties.

Since these properties are presumable vacant only Hard Money Lenders will loan on them as a Private Money Lenders requires the property be rented / leased at time of closing!

I might take the first but I would leave the second under your scenerio and financial presentation!

Good Luck,

                   GR
3

You could also check with local banks in your area. I’d be surprised if none of them were lending on investment properties.
When we were looking for a bank, we went “bank shopping” and took our financials all over town. We found some banks that would lend on NOO (non-owner occupied) properties while others were out of the game completely. Of the ones that did lend, each bank had their own criteria for % down.