Private Lender Link has a limited number of resources for property investors to find lenders that provide 100% financing (no money down) for real estate deals, or anything more than 90% loan-to-cost. However, we do have a few options to recommend and hope this article provides some insights into private lending and points you in the right direction.

100% Financing is very rare in commercial real estate deals. It is much more common in residential real estate investing, and more specifically for fix & flip deals as opposed to long-term rentals. If the plan is to sell the property in a short period of time, a private lender is going to be more willing to provide the loan since the “exit strategy” is clear. The majority of private lenders that will fund the entire purchase and all the rehab costs for a project are local individual investors who are willing to bear the high risk (for a high reward) and may be prepared to take over a project in case the borrower/sponsor does not perform. It’s essentially a joint venture, and the lack of equity (cash) a borrower brings to a deal will typically mean less profits when the property is completed and sold.

Most private lenders who do provide 100% loan-to-cost will only do so for experienced real estate investors. New real estate investors with no experience and no money to put down will have a lot of difficulty finding a private lender.

On our site you will find a number of private lenders providing financing for residential rehab fix & flip deals throughout the United States, but all are private lending companies, not individual investors. Most of them will require borrowers to put some cash into the deal. For fix & flip deals, we have seen a number of lenders requiring 20% of the purchase price, and many will require just 10% of the purchase price. Once the purchase transaction is closed, some private/hard money lenders will provide 100% of the rehab / renovation / construction costs.

There are a few private lending companies on our platform that will consider financing 100% of the costs, but only for experienced property investors. Here are a few recommendations:

For new residential real estate investors who don’t have any experience, Do Hard Money could be a good option; they lend in 34 states. Many lenders we talk to suggest that new real estate investors find a partner for their first few deals. There are many REI (real estate investment) clubs throughout the country where real estate investors meet to network and learn. Many REI Clubs are listed on Meetup.com. The more established clubs use their own website instead of Meetup.com, so a Google search for “REI club” plus the city or state should get some results.