100% LTV Financing for Fix and Flippers | Private Money | Hard Money

Real Estate Broker/Owner with Private-Money-Loan.com BRE#: 01849108

100% LTV Financing - The Myth Is True


In the world of real estate investing one thing is always true. The more properties you can buy the more money you can potentially make. Ok, you might think this inherently obvious, but many people don't realize this. Too many times when someone is looking to buy a property, or more to the point finance a property, they are always analyzing and concentrating on the wrong things. Home buyers are always on the hunt for the best rate. Ever since an investor was ever informed about financing they have always had one goal in mind; finding the lowest interest rate on planet earth. What they really should be doing is calculating how they can maximize their buying power so they can leverage their money to purchase more property. This mainly pertains to fix and flippers and rehabbers, but it resonates across the board in some ways as well.


searching for interest rates


Rate Doesn't Matter... "Say What????"

I am not here to tell you rate doesn't matter ... oh wait, that's exactly what I'm telling you. Now class, repeat after me, rate doesn't matter... good ... say it again, this time a little louder... RATE DOESN'T MATTER ... do you believe it yet? I bet you don't. The reason why I say rate doesn't matter is because if you're flipping this property than you're going to hold on to this property for what? 90 days? 120 days? Interest rates matters when you are holding on to it for 30 years and going to make 360 payments on a note throughout your lifetime. Your rate over 4 months? Come on now. Concentrate on what matters. It's not the current interest rates.


Wanna Play Real Estate Roulette?

Look, I'll admit it ok, if all things are equal in a given situation than rate does matter because you want to save as much money as possible. Yes we know, first rule of business is not how much you make it's how much you don't spend blah blah blah. Lower your bottom line and your profits will grow blah blah blah. Thank you Business 101.  We all get the basic rules, but making your top priority be the saving of a few bucks you can can ruin literally ruin your investment strategy. What you call thrifty shopping, I call Real Estate Roulette.


real estate roulette

One of the key things you need to do is work with someone that can deliver and that you trust. Real Estate financing is not something that a person can do well their first day on the job. It takes thousands of closed transactions to understand how to navigate the intricate details of the way everything works. If you find a lender you like, and they treat you well, then they are worth their weight in gold. I swear to god, especially if you find someone who can provide 100% financing otpions. 


If you work with someone that you know and trust and he charges a rate of 10% you might be inclined to look around and shop for a better deal all because your Business 101 professor beat that into your head along with every advertisement during the refi boom. Now, let's say you find a guy that says he can do everything your trusted lender can do, but he can get you 8%. Wow, 2% savings, sounds great right? WRONG!!!! Over your 3-4 month period you may save a thousand dollars or so, but you just put your entire investment future into the hands of someone that you don't know and hasn't proved themselves. They are an empty promise on the other end of a telephone. He might be able to close at 8%, and he might not. Are you willing to gamble your investment away? You wanna play real-estate roulette? What if in the middle of the transaction he realizes he read his rate sheet wrong and he needs an extra 10% down payment that you don't have? Now you just wasted 2 weeks with this moron on a 17 day close and you now have to get an extension or walk away from the deal. If you were standing to profit $50,000 from your flip you have now just lost $50,000 because of your epic bragging rights quest of attempting to save 2% on an interest rate over the next 4 months. Nice work pal. I can tell you're not going to be investing too long.


ABCs: Always Be Closing

It's a cliché but ya gotta love Glengarry Glen Ross, even if you feel the language (get over it)  is minorly offensive (If you don't know what I'm talking about then you must not be a salesman and go buy it now from Amazon). Always be closing. Alright now we're getting somewhere class. "Always Be Closing" means so much more than concentrating on working with people you trust so you can close. I literally mean you should always be closing. Your goal as a fixer and flipper should be to always be in escrow whether you're buying a new prospect or selling a recently remodeled fixer upper. You should always be in escrow. 


All Cash Offers with Other People's Money

This is going to trigger your anxiety about having enough capital to go around. In order to invest you need capital, there is no doubt about it. However you don't need all cash for every single transaction. What you need to do is leverage the cash that you do have so you can maximize the amount of properties you can buy at any given time. You do this by utilizing and tapping into the wonderful world of Private Money. Private money is this somewhat obscure world in between hard money and your rich uncle Bob. If you can find the right private money lender out there then they are worth double their weight in gold.


Leverage is the #2 Priority

Chances are if you're looking to invest in properties than you should have some capital in which you plan to use for your investments. More than likely you don't have 2-10 million dollars lying around to buy every investment opportunity you see in straight cash. Now, if you go back to the train of thought of maximizing the profitability of a single transaction (from your business 101 professor) as being the top priority than you'll believe that buying a property all cash is what matters most. All cash means no lender fees, no interest rates etc... You can save money by  purchasing a home all cash, but that limits you to only one or a few transactions.




Hypothetically let's say you have $125,000 you can invest. (please keep in mind I am oversimplifying this to make a point).  Now you could purchase one property at $100,000, put $25,000 into it and then resell it for $155,000 giving you a $30,000 profit. Sounds pretty sweet right? You saved loan costs and you bought yourself a nice property and resold it for a nice profit. 


Now, let's say you have the opportunity to buy 4 houses for $100,000 each + $25,000 each for the rehab. Well that stinks, you're $375,000 short. Change your way of thinking. Borrow 100% of the purchase price money from Private-Money-Loan.com for each home. Let's say it costs you $5,000 for each loan in rates and fees. Well, you resold each home for a $25,000 profit and made $100,000 in profits versus $30,000.


That is exactly why rate doesn't matter. If you're working with the right person that can deliver results than you will be able to buy more houses by leveraging your money with more aggressive programs. This will always yield you much better results and much more money.  


100% Financing is the Holy Grail for fix and flippers

It is not easy to find 100% LTV financing, but it is out there. You just need to look in the right places for it. Concentrating your efforts on finding the maximum amount of leverage is going to be the biggest payoff for you in the long run. Utilizing other people's or a company's money will cost you more per transaction, but if you listen to Alec Baldwin and follow the ABCs then you'll be a much wealthier person than any "rate bragger" out there in the world.


Best of luck out there.



More about the writer: Steve Snyder has continually provided hard money and joint venture programsfor lots of property investors for upwards of Twelve years. Steve Snyder is the Founder of the firm Private-Money-Loan and provides excellent solutions for anyone around him.


Comments (25)

Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

and welcome to ActiveRain.... I hope you enjoy it here and benefit from all of it...

Jul 08, 2016 12:43 AM
CA COASTAL ESTATES Lauren Selinsky Perez CRS
California Coastal Estates - Aliso Viejo, CA
"Your Real Estate Broker" #oclauren

Private Money Lenders are exactly that GOLD. I need one.

Welcome to ActiveRain and look forward to your future blogs. Following you now.

Lauren Selinsky

Jul 08, 2016 07:44 AM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA


welcome to the Rain and congratulations on your first blog post! 

Jul 08, 2016 04:56 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

Welcome to ActiveRain. I like the style of your writing (blah blah blah). Thanks for sharing.

Jul 08, 2016 10:09 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Steve,  
Great post.  Welcome to the world of Active Rain blogging.  It is an extremely valuable platform to connect with other agents and potential clients.  

Jul 09, 2016 12:07 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

BTW, Steve:  Do you know any hard money lenders who would loan on a stick built home on leased land?  

Jul 09, 2016 12:07 AM
Steve Snyder

Yes, it will depend mainly on LTV. Where it is located? And how long the lease is for. Then the most important thing... are the comparable sales that support the value also leased land? If it is standard and usual for the area (i.e. Hawaii) then it makes sense. If it is an outliar, well, then that can be very complicated.

Jul 09, 2016 12:12 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is good information to share. Many real estate agents should be flipping properties to substantially increase their income.

Jul 09, 2016 03:23 AM
Steve Snyder

I completely agree

Jul 09, 2016 03:33 AM
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Steve, interesting post!  I don't do a lot of work with flippers, but your post made it easy to understand how the financing end of it work.

Jul 09, 2016 11:25 AM
Robert Vegas Bob Swetz
Las Vegas, NV

Hello Steve

Congrats on your first post and welcome to the ActiveRain network!

Jul 09, 2016 03:13 PM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Steve Snyder - Welcome to ActiveRain. This is The Best place to learn, share and build relationships with like-minded professionals.

Jul 09, 2016 03:56 PM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

'The Myth is true' - hope it does not lead us to same place where we were few years ago.

Jul 09, 2016 03:56 PM
Steve Snyder
Private-Money-Loan.com - Los Angeles, CA
310-948-8585 |100% LTV | Stated | Private Money

Praful Thakkar There are too many safeguards in place for us to go there. The 100% financing options is for fix and flips with sweat equity built into the After Repair Value. It won't artificially inflate anything like Neg-Am loans and sub-prime stated programs back in the day. We're in the clear... for now.

Jul 09, 2016 05:06 PM
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Welcome to Active Rain Steve.  Great blog, well thought out and presented with great visuals.  How soon can you execute on a hard money loan and are there any minimum lengths of time the loan has to be out?  I work with investors who have been exploring options.

Jul 10, 2016 04:26 AM
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Hi, Steve!  I included this post in today's Last Week's Favorites.

Hope you enjoy the rest of your weekend. 

Jul 10, 2016 04:51 AM
Steve Snyder
Private-Money-Loan.com - Los Angeles, CA
310-948-8585 |100% LTV | Stated | Private Money

Patricia Kennedy Thanks so much. I hope it helps the community.

Jul 10, 2016 04:56 AM
Steve Snyder
Private-Money-Loan.com - Los Angeles, CA
310-948-8585 |100% LTV | Stated | Private Money

Ryan Huggins - Thousand Oaks, CA - Hey Ryan, nice to meet you. Basically I have two main programs I use for Southern California Flippers. I have many options, but these are by far the 2 best options.


100% Purchase Price Financing: http://private-money-loan.com/100-percent-fix-flip-financing/

90% Purchase Price + 100% Rehab: http://private-money-loan.com/90-percent-fix-flip-rehab-financing/


We get them done in about 14 days ... we can move faster if the stars align, but 2 weeks is pretty quick for that kind of leverage. 


100% deal has a 4 month guatrateed interest period

90% + 100% has zero minimum and zero PPP

all my pricing is super competitve and usually is the best in town or damn close to it.

Mainly I close deals... I only get paid if I close so I am a closer. Let's talk in more detail when you have time.


These are my bread and butter programs that I do all the time and they really benefit my clients. 


Jul 10, 2016 05:01 AM
Ryan Huggins - Thousand Oaks, CA

Thank you Steve!

Jul 10, 2016 06:02 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Private loan works best when one can not be qualified for a major loan.

The downside is not all flipped homes investor makes money on them. It is a hit and miss these days.

Jul 11, 2016 01:56 AM
Steve Snyder
Private-Money-Loan.com - Los Angeles, CA
310-948-8585 |100% LTV | Stated | Private Money

Sam Shueh I think the only way someone is not making money on a flip is if they didn't do enough due diligence up front where they bought the wrong property and projected the ARV to be higher than it really is.

Jul 11, 2016 03:23 AM
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

877-945-5626 Steve SnyderReal Estate Broker/Owner with Private-Money-Loan.com, in Silicon Beach, Santa Monica.


Jul 11, 2016 05:02 AM
Lemont Jones
Regal Funding Agency - Alpharetta, GA
Private funding. 90%LTV purchase money 100% Rehab

Im looking for private funds for a great project. 100% ltv if posible. I use had money all the time usually put down 10% and get 100 rehab funds. This particular project is huge  so im looking for more funding options

Jun 25, 2018 08:07 PM