I'm just now starting to deal with private lenders, I have a couple properties in my area that I'm trying to get financed. What advice can you give and do you do business in SC?
Yes, we lend in SC but it must be in SC major markets such Greenville, Columbia, Charleston and Hilton Head.
A couple of things to note when working with a private lender:
1. Do not pay any upfront fees (only pay for an appraisal or a rehab inspection if the lender requires it)
2. You will have to bring a downpament to closing typically, 10% - 20% of the total costs of the project - subject to 70% of the ARV / its prudent to have 20% of the total project costs at your disposal - we want to make sure you have enough money for the Downpayment + closing costs + 10% of the rehab budget + 3 months payments while the property is being rehabbed
3. Although credit is not the most important item when we underwrite a file it is very important- make sure you pull your own Tri - Merge credit report to see what your scores are
4. Consider finding a mentor or partner with experience- our pricing is largely dictated by the experience of the borrower - the more experience, the better the rates we can offer
5. Go to a number of your local Real Estate Investor Associations in your area and start to network with investors that have a good amount of experience- they may partner with you if you find a good deal and can put up 50% of the Downpayment
