I have hard money lender that will fund me 80% of 65K rehab deal. Is there a private funding that can cover the 20% plus closing cost?

Asked by Diante Adams, Chicago, IL Tue Sep 24, 2013

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Don Tepper, Agent, Burke, VA
Wed Sep 25, 2013

You're very fortunate to have found a hard money lender to lend you 80% of the rehab. Here in the D.C. area, it's generally 65%. In fact, even in "good" times it was never above 70%.

As another answer notes, hard money lenders now want you to have some "skin in the game." I work with one who only requires 5%; some require 10%.

Remember, too, that the hard money lender will be in first position. That means that whoever lends you 20% will be in second position--a very uncertain place to be.

OK: You might find some private lender out there willing to put up 10% of $65,000. That's $6,500. But unless you're talking about family or friends who'd just be doing you a favor, you'd probably be paying 20%-30% plus a few points--because of being in second position.

One other note: $65,000 overall isn't that much. Yes, it's real money. But if you're struggling over $13,000, maybe you should build up your reserves (perhaps by wholesaling a few deals) before doing a rehab.

Hope that helps.
1 vote
Flag Mon Apr 21, 2014
JoAnn Ross, Home Buyer, Oak Park, IL
Thu Mar 12, 2015
HI, I was reading this thread and was searching for a hardmoney lender for my third project. Any recommendations would be greatly appreciated. To keep this great deal 2 unit $55,000 and renovate $70,000, I must close before March 23, 2015.

Thank you,

0 votes
tramaineraig…, Home Owner, Chicago, IL
Sun Oct 5, 2014
Hi My name is Ken Moore

I work with http://www.rendercapitalgroup.com and we specialize in rehab loans. Im sure we can get you private funding that can cover the 20% plus closing cost. Contact us today to begin the process.
0 votes
Hi I work with Hardmoneyflps.com we provide referrals to you. Can you email us at purchasing@hardmoneyflips.com if you still have this special ability?
Flag Tue Oct 6, 2015
Rehabfunding…, Home Buyer, Chicago, IL
Thu Jun 12, 2014
We will fund 100% of the rehab costs. No loans, and no liens on the property.

Need to be selling the property to qualify.

email me: rehabfundingtoday@gmail.com

0 votes
Hi I work with Hardmoneyflps.com we provide referrals to you. Can you email us at purchasing@hardmoneyflips.com if you still have this special ability?
Flag Tue Oct 6, 2015
Wayne Beals, Agent, Chicago, IL
Wed Oct 9, 2013
Hey Diante,

Don't know if someone will take on the last 20% with a hard money lender in first position at 80%.

You've got to remember, hard money lenders want your skin in the game. If they completely fund your deal, they're not confident you will make the project a priority.

Shop around a bit. If you've got a good enough deal, with a good after improved value, a good scope of work, and successful project experience, you may be able to convince the lender that they can be a bit more liberal on the loan amount. That said, the more risk they take on, the more the loan will cost.

Best of Luck!

Wayne Beals
0 votes
Santiago Ken…, Agent, Chicago, IL
Wed Sep 25, 2013
Good luck with that plan , you will need it to find a hard money lender today
0 votes
Josh Bach, Home Seller, Northbrook, IL
Tue Sep 24, 2013
I am in desperate need of a serious hard money lender. Can anyone recommend somebody serious?! I am experienced real estate investor with good, verifiable track record and need to expand my business. Please let me know. Diante can you please share your hard money lender info with me? My email is joshbch2@gmail.com.
0 votes
Josh, I know this is an older thread but if if you are still in the market for fix and flip financing I do 75-80% LTC for "fix and flip" experienced investors. Shoot me an email mpechony@ancvil.com or call 312-612-0348. My firm has very good reputation and we have been around for a while
Flag Mon Jun 2, 2014
Good luck with that ...you will need it ......
Flag Wed Sep 25, 2013
You are making a mistake.
Flag Tue Sep 24, 2013
Manuel Brown, Agent, Chicago, IL
Tue Sep 24, 2013
Hard money lenders will depending if it makes sense.
0 votes
David Hanna, Agent, Chicago, IL
Tue Sep 24, 2013
If you are talking to a hard money lender, your credit is less than perfect, and the note holder for the other 20% will have virtually no recourse or security.
Good credit gets you an FHA loan. No partners, no rip off interest.
Find someone who trusts you and believes you will pay them back even if the deal goes south.

Good luck. Fix your credit and make big $$ with this game plan.
0 votes
Alvin Dobbs, Agent, Waukegan, IL
Tue Sep 24, 2013
You are asking the right question--but to the wrong forum. There are other places to ask your question and get a more positive result. Note of caution: For the info you seek--some will demand fees to help. Be careful. Also just from a quick look--the deal you have may be too
"skinny" to have private investor funding.
0 votes
Toska Palmer, Agent, Chicago, IL
Tue Sep 24, 2013
You need some skin in the game. Sounds like you are trying to rehab with none of your own money. An FHA loan is the way to go on this one.
0 votes
Matt Laricy, Agent, Chicago, IL
Tue Sep 24, 2013
Your looking for a no money down which is pretty tough to come by.
0 votes
Chris Fischer, Agent, Homer Glen, IL
Tue Sep 24, 2013
Unfortunately, their 80% is pretty accurate with other hard money lenders. If you were to go the route of using a commercial loan lender, they would fund 75% of the acquisition and expected rehab amount. You pay interest only (typically 7-7.5%) until it sells and you pay it back. It's another good option to circumvent the process of using pure cash. It is not likely that you would find any private lender to jump into it and fund the last 20%. Family/Friends/Joint Venture Partner could help...
0 votes
Mark Ghaowi, , Chicago, IL
Tue Sep 24, 2013
Maybe you would like to consider a 203k Rehab loan. FHA will allow you to purchase a home that needs renovations or some updating and obtain one loan that includes funds for the purchase and rehabilitation costs, inspection fees and 6 months of carrying costs. Renovations can be completed as long as the existing foundation remains in place. Additionally, it is possible to finance the home and renovation based on the future value of the property.

If you are interested in considering this option, please call or email:

Mark Ghaowi
Guaranteed Rate
0 votes
Bill J Delig…, Agent, Naperville, IL
Tue Sep 24, 2013
Tap into your friends and family network.
0 votes
Melissa Goss, , Center Moriches, NY
Tue Sep 24, 2013
unlikely... friends or family may be your only option here. You are basically seeking 100% financing... just do not see that happening.
0 votes
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