No Money Down Fix & Flip Loan.

By
Mortgage and Lending with Webster Bank 49493

The little to no money down hard money rehab loan still remains at the top of the list of loan requests I get (all the time!).

Basically I get a the client who wants me to find them a lender who will buy the property and fund 100% of the rehab expenses.

This is a very tough request to fill because most hard money lenders and finance companies are a little more protective of their money. In this scenerio the borrower is asking the lender to take on all the risk. 

Again, very tough to find a lender excited about this scenerio, especially in today's climate with a lot of borrowers who have a strong down payment or other property to pledge as collateral.

That's pretty much the point of this post, to suggest a few options for the would be property investor who is a little light in the down payment department.

The no money down hard money loan requests that I have seen close have had borrowers share the risk some other way. One common way is if a borrower owns other real estate that has a decent amount of equity in it. A lender can use this as collateral and lend off of this property. 

I've also seen borrowers bring on a partner who has some down payment money or has some property to use as collateral.

Bringing on a partner could just be a temporary option for a borrower. Granted they'll have to split the profits but it allows them to start cash flowing , impress a lender and gain some experience. Do this a few time and now you have some funds to work with and having established relationship with a lender sometimes does translate into getting a short term loan from then with little to no money down.

 

Jason

 

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Jason E Potrzeba

Loan Advisor

Acadia Advisory Group

Riverside RI 02915

(401) 580-7612 Cell

(401) 223-4975 Fax

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Topic:
Lending / Financial
Groups:
Mortgages
Tags:
rehab loan
buy a foreclosure
hard money broker

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Rainer
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Jason Potrzeba

Mortgage Banking Officer
I can help! What do you need a commercial mortgage for?
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