Real Estate Private Lending Forum
Every investor remembers making decisions they would approach differently today. Maybe you didn't fully understand loan terms. Maybe you underestimated holding costs. Maybe you didn't ask enough questions before signing. These experiences can help other investors avoid the same mistakes. What's o...
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Find a LenderI am very new to real estate, and I just learned that a ‘hard money’ loan for a house flip could cost me thousands a month in interest. When starting out without paying cash, do people just eat the interest and flip it as fast as possible? Or is private lending really the next best option in this...
I own two fourplexes in Enterprise, AL (8 units total), held for about 10 years. They’re worth roughly $500K combined, with about $105K owed at 3.2% and 4.2%. They’re fully rented and professionally managed. My goals: Keep both first mortgages. Those rates are too good to give up. Qualify on the ...
Sharing how we set up gap funding on our Atlanta flips, since I get asked about the structure a lot. Our primary lender covers most of the purchase and the rehab budget. What's left — the down payment gap and closing costs — is usually $35,000 to $45,000 per property. That piece comes from a priv...
🤔 What happens when an investor buys what looks like a turnkey rental and then the appraisal comes back and blows up the financing? Pretty much all DSCR Lenders use the same two tests from the appraisal - the condition rating (C1 to C6, the Fannie Mae UAD scale) and the deferred maintenance numbe...
Warning for other small business owners and landlords — learn from my last two weeks. Since I started looking into a business line of credit, my business line has been flooded with unsolicited "funding" texts and calls — sometimes five a day. The pattern is almost always the same: 1. They text fr...
I have a rental property that I am looking into refinancing. It is a duplex, and presently at 7.8% rate. I am hoping to lower my rate, and get some cash out. It is presently on conventional loan and title is on my name. I am looking at refinancing into DSCR or another conventional but looking to ...
Good afternoon BP community. I am looking to start my investments in to PML. Has anyone invested with or had dealings with the Fi Couple, who are PML facilitating company.
When capital partners ask how they can work with an operator, I usually walk them through two very different structures, because the right fit depends on whether they want equity upside or a defined lending role. In a co-flip, the partner purchases the property through their own LLC and funds the...
Hi Guys. I am finishing a three-apartment unit renovation, and I am starting to look for a lender to refinance it long-term. Any suggestions for companies you had a good experience with? Can be brokers, banks, etc.? Are there any lenders charging less than 7%? I would appreciate any help and guid...
I build new construction duplexes and small multifamily for buy & hold investors, and a big share of our buyers finance with DSCR loans. The loan itself is pretty simple: the lender qualifies the property's rent against the full payment (principal, interest, taxes, insurance, and HOA if any) inst...
There’s a lot of information online about real estate financing, but the terminology alone can be overwhelming. LTV. LTC. ARV. Points. Draws. Term. Exit strategy. For experienced investors, these are familiar concepts. For someone entering their first project, they can feel like another language....
I've been working on a refinance for a BRRRR in Indiana with a broker for the past couple months. I had the ARV estimated at $130k, with a loan amount of $97.5k. I had my rate locked at 7.375%. I got a call from the broker today that we need to go with a different lender because he had apparently...
Something I've been thinking about while connecting with investors, operators and private lending partners is how often we get caught looking at an opportunity through a sniper scope when sometimes we ought to be using our iron sights. Hear me out. We've got investors comparing points, interest r...
I am looking for financial advice. My wife and I recently sold our first flip and are looking to buy a forever home. The home we are looking at is in rough shape and will only accept cash offers. We are looking at offering 260k. We are able to contribute 100K leaving us with money to rehab after ...
Question for the private and rehab lenders here. After over 20 years of renovations and turns, I've seen draws go out on a contractor's say-so, a few photos and trust. A recent thread here made a point I keep coming back to: proof of work and proof of payment are two different things. The work ca...
I’m a lender, so I probably shouldn’t say this: the lowest rate isn’t always the cheapest money. Suppose I’m buying a property and I have two financing options. One lender is at 7.25%. The other is at 6.75%. Same loan amount, roughly similar terms. Half a point cheaper? Easy decision. Except the ...
I am a mortgage broker and I have an Arizona client who is looking to finance a PadSplit. Does anyone have experience with these kinds of properties? Any lenders that are PadSplit friendly? Following up with specifics. Looking for DSCR lenders that will close on a turnkey rent-by-the-room PadSpli...
Hello everybody. I'm looking at properties in Kentucky and Tennessee currently for LTR. I am looking to compare DSCR and conventional loan rates to see where I can get the best deal overall. My max purchase price will be $400,000, my FICO score is around 720 and Experian VantageScore is around 76...
We sold a fixer upper mobile home on payments a year and a half ago. It's going great and we love this strategy. But about six months ago, the homeowner's insurance was canceled due to underwriting issues and some repairs not being completed on the home. The borrower asked us if she could be rele...
Kansas City investor here, introducing myself to this side of the forum. I've completed 7 projects in the last 3 years, mostly renovations and BRRRR holds, and I'm at the stage where the quality of my lender relationships matters more than the quantity of deals I chase. I'm structuring my buys mo...
A rental, a ground-up construction project, and a fix-and-flip can have completely different financing needs. That’s why I think the better question isn’t: “What’s the best loan?” It’s: “What financing structure makes sense for this specific project?” The property, timeline, exit strategy, and in...
When bringing private capital into a deal, operators seem split right down the middle. Some strictly borrow on a promissory note at a flat interest rate (say 10% to 12% annualized). If the project sits on the market an extra two months or has minor hiccups, the interest meter keeps running, but i...
adapted from my dscr loans guide - more relvant now than ever with the crazy rates right now See a lot of "what are DSCR rates right now?" posts on here, and the honest answer is it depends a LOT on how you structure the loan - theres no single rate even for the same borrower on the same property...
I came across an investor refinancing a duplex in Tucson with a loyal tenant who had been there six years. She never raised the rent much, so the lease sat about 300 dollars a month under what the place would fetch today. She ran her numbers on market rent and figured the cash out was in the bag....