BiggerPockets

Hello Dean and welcome...glad to see anothe lender on board...I may be needing your services at some point!

Hey Ted. Most of my loans are within 50 miles of Atlanta. I'd consider other parts of Georgia or possibly Florida but that's the extent of my geographic range.

Welcome to BiggerPockets, Dean! Be sure to jump in and respond to all the people who have questions for you.

That is entertaining Dean. I, and I am sure most others here, have heard the guru zero, nada, nilch down pitch.

Dean,

Your loan origination and interest rates are not too bad. I do however wonder if your flexible on your out of pocket expense? I only ask b/c most of the time when I sell a home to an investor they are already bringing an average of $5,00 just to close the transaction and that is based on a short term loan of 70% based on the ARV. Let me know if you have flexibility on your amount to the close. Thanks

Curt,

I agree with Dean in that the investor has to have some skin in the game.

A lot of lenders got in trouble financing 100% of the purchase, rehab, closing costs, and rolling in the interest (I know I did). When the going got tough many investors bailed on their loans, because they had nothing to lose.

Once I started requiring investors to put some of their money in to the deal, i got better qualified investors and my foreclosure rate dropped dramatically.

I'm always amused when I see a post from someone looking for a "true hard money lender," that will lend 100% of the deal solely based on the property. Translation: they've been listening to the gurus and have no income, reserves, or credit. They are asking the hard money lender to take all of the risk, for a relatively small portion of the profit.