One of the hard money lenders we know of frequently asks that we send them deals.
They are looking to work with people who are doing lots of deals currently or looking to start rehabbing houses.
he lend to projects ranging from $20,000 up to $1,000,000. There is no minimum score required when it comes to your credit.
Because the deal you bring them is more important than your credit, they use a checklist to help determine whether you’ve found a great potential property to flip.
Here is the checklist they use: – Property must be a single family residential home.
(They also lend if you’re flipping a rental property with 1-4 units). – Not owner occupied, meaning it is not a house that you personally live in.
– Not located in a flood plain. – Not have any major environmental issues.
– Not located a high crime area. – Preferably located in or near a large city, in a stable or growing neighborhood.
– Priced within the median price range for the neighborhood. (In other words, the house should not be priced way above other houses in the same neighborhood.)
Having a hard money lender use a checklist to evaluate your deal is a hidden benefit of using hard money.
It’s another set of eyeballs checking out the property for you.
This can help you spot something you may have overlooked on a property. Or, it gives you the confirmation you need to move forward on a project.
This lender likes to see a down payment of at least 8%, but is open to other arrangements if you are short on the down payment.
For example, you can “cross-collateralize” another property that you own for the down payment or have the seller carry-back the mortgage.
They also have a program where they lend 100% of the deal for a share in the profits.
The 100% lending program can work if you have experience rehabbing homes or are partnered up with someone with experience.