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    4 Replies Latest reply on Jun 24, 2008 10:28 AM by WarrenD

    Financing, How to get it?

    WarrenD Adventurer
      Hello, my name is Warren. I am starting a Real Estate rehabbing business. I am looking for a 25K working capital loan. I went to the SBA, and they have several loan programs that I qualify for, even a special one because I'm a veteran. The problem I go to there banks and they say SBA says it's to speculative, even though the SBA told me it wasn't 2 days before. Right now I can pick up a REO, (bank owned), property for under 50K, put 25K in it, and turn it around and sell it for 140K. I can pick up 5 to 7 of these a year. I do have a business plan, and will be an LLC within a week. I am in Oklahoma and the Real Estate market wasn't hit that hard here. BOA won't even do start-up loans, even with SBA. Tell me please what a veteran has do to get a capital loan? Thanks Warren
        • Re: Financing, How to get it?
          Tracker

          Search online for asset-based lenders or hard money lenders. These lenders are interested in the value of the collateral only which makes real estate one of their primary interests for funding.

           


          Many wealthy or well capitalized individual investors that like real estate deals put their money to use in that way. Of course the cost of this type of money is going to be high so you will want to run the numbers on the deals to make sure you can cover your debt service until you can refinance at a lower rate or flip/sell the property once equity has increased to make it a profitable deal for you.

          Good luck with your real estate.

          Dennis Lowery
          Adducent, Inc.
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            • Re: Financing, How to get it?
              WarrenD Adventurer
              First and most of all thank you for responding to my post. I will look into what you suggested. I've looked into hardmoney lending. It's might be the way I have to go. The only thing is that it could slow down the rehab, and the interest and points can be a little high. Thanks again Warren
            • Re: Financing, How to get it?
              Lighthouse24 Ranger

              I think I responded to another post from you and provided a couple of links -- beyond those resources, the only other program I'm aware of (outside Texas) is one called Access to Capital that is co-sponsored by The Veterans Corporation and the National Economic Opportunity Fund. The potential problem is, you can't use it to fund firearms, porn, multi-level marketing, or (you guessed it) real estate investments. That's probably the obstacle you'll encounter with any seed program designed or underwritten for vets (or minorities, or anyone). Here's their website if you want to check it out anyway:

              http://www.veteranscorp.org/Public/Access
              ToCapital.aspx

               

              You may have to pursue a "hard money" solution, which most likely come from a private investor or firm rather than a commercial lender. LVHardMoney is one example. The company is Las Vegas based, but lends in OKC.

              http://www.lvhardmoney.com/states-we-lend
              -in/oklahoma-hard-money-loan.html

              (Note: That's just an example. I'm not affiliated with nor am I endorsing that company.)

              Other sources for possible hard money would be websites like
              http://www.lendinguniverse.com/

              (same disclaimer)

              Hope that helps. Best wishes.

              1 of 1 people found this helpful