[Daniel Williams]

Daniel Williams

Hi everyone,
Do anyone know of hard money lender that will loan on a construction project.
I’m a realtor also and my client just bought land and want to build a house but credit is not quite there for traditional loan.

[Jackie Lange]

Jackie Lange

YIKES! Your client should have figured that out before he bought the land. It’s putting the cart before the horse.

I don’t know of any private lenders who would do that but if you do find one, they will probably want 50% of the profit and only release money on draws. Most likely, they will want to be in title to the land and the project so they do not have to foreclosure if your clients bails on the project.

Does your client have a track record for building houses? That is one of the first questions a private lender will want to know?

[Daniel Williams]

Daniel Williams

This will be their primary residence, but cannot qualify for a construction loan

[Jackie Lange]

Jackie Lange

HI Daniel

There are too many restrictions for a private lender to loan on an owner occupied property.

Hopefully they have not closed on the land deal yet. A private lender or hard money loan will not work.

If their credit is damaged, you should help them find a property they can buy with seller financing or subject-to the mortgage. Or even a lease with an option to buy.