Making Hard Money Work At 65%LTV
Does anyone have any advice on making Hard Money work if they will only give you 65% LTV? Is it still possible to buy a property only using the 65% from lender, without putting up another dime?
Not to my knowledge. From what I understand, alot of the hard money lenders are going in this direction. I have been advised to see if I can find a financial partner to come up with the down and offer them a good return. If you figure the deal right, you should still be able to pay back the private partner and still come away with a nice profit for yourself. The lenders are wanting to see more commitment on the investors side due to losses they have incured.
As a Rule of Thumb, most Hard Money Lenders want to see a buyer/borrower with some skin in the game. Lender will probably consider 65% financing if the buyer/borrower is bringing at least 10% to 20% of the purchase price into the transaction. Seller financing allowed for the difference in a subordinate position.
Some Hard Money Lenders may consider a No Money Down transaction if they are only financing 50% or less of the purchase price. (case-by-case)
Quote:
On 2010-04-24 16:48, newtree wrote:
Does anyone have any advice on making Hard Money work if they will only give you 65% LTV? Is it still possible to buy a property only using the 65% from lender, without putting up another dime?