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Combining Seller Carry Financing & Hard Money Loans in California
We work with many unique situations when dealing with hard money loans in California. One unique situation involves seller carry financing in conjunction with a hard money loan. While many conventional lenders will not work with this situation, we have funding available to help take advantage of the higher leverage point this combination can bring. For investors looking to purchase distressed properties, leverage is often the key. Utilizing hard money funding can help with this leverage. This is especially true in fix and flip funding scenarios. In these situations, we can put loans together based on the ARV, or after repair value of the property. This allows for higher leverage than basing the loan on the purchase price. For savvy investors who are able to find seller carry situations, combining a seller carry back with this ARV funding can potentially enable 100% funding on both the acquisition as well as the rehab. We have programs that will treat a seller carry as cash in from the buyer. In these situations, the seller carry must be in second position to the first position hard money loan. Under those circumstances, however, we have successfully enabled many investors to acquire property with little to no money ... more
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