Are there any private money or hard money lenders in NJ that lend 100% of the rehab and purchase price that don’t require credit, and have a good interest rate? I’m looking to do rehabs only.
What you are looking for is a unicorn. Most hard money lenders won’t lend 100% to a newbie unless we’re talking 50% LTV. And, most HM lenders do pull credit and charge high rates (12-15%) and 3-5 points up front. It’s not like the old days were HM lenders went strictly on equity; most HM lenders use a pool of investor funds so they have to follow strict guidelines.
Your best bet is to partner up with someone experienced your first few deals, which means education and less profit. Once you are more experienced, HM lenders will go 100%.
Some private lenders (usually a retired investor) who use their OWN money will be more flexible and lend to you as a person if they trust you.
If you really want to impress a hard money lender on a first deal, make up a binder with 5 tabs:
Tab 1: All about you (resume, references, credit report, etc)
Tab 2: All about the property (map, comps, photos)
Tab 3: All about the deal (contract, deal spreadsheet, repair estimates, inspection)
Tab 4: All about your team (broker, atty, insurance, contractor, etc)
Tab 5: Your exit strategies (resale, rental, refi, etc - what if it doesn’t sell?)
Make a convincing case that you know what you are doing and have thought it all through from every angle.
Put this all in a PDF or binder and present it ALL at once to the HM lender. You’ll impress the hell out of him!