I am new to borrowing from private money lenders. I have been speaking with loan officer for Pamela and Robert Smith Investment Limited Partnership based in Bakersfield CA. I am looking to build a long term relationship. Has anyone worked with them? What was your experience. I asked for referrals but wanted to put out feelers.

I haven't worked with them but references of happy customers you can call and a list of recent fundings is good.  How did you find them?

I havent worked with them or heard of them either, and I work pretty heavily in the investment space in Bakersfield. I would definitely check out their referrals. 

I haven’t heard of them nor worked with them but did recently use a hard money lender for the first time on my last fix & flip. Before finding the lender I went with, I did look heavily into bakersfield private/hard money lenders & found that they’re rates, points & fees were just ridiculous. So it really just depends on what kind of terms they’re offering you. Are you able to share those details? 
The lender I went with is based in Texas & gave me 8.2% interest rate, amortized over 12 months, 2 points & only few was $1000 for appraisal/inspection. The rates I found in bakersfield were in the range of 10-13% rate, 2-4 points & anywhere from $2000-$5000 in fees. I would love to hear if you’ve found a good local lender as I would love to support a local business! 

They reached out on one of the investor Facebook groups I am a member in. They provided one referral but the docs seemed iffy and the number for the Loan officer different than the company although company was registered. I am a newbie and overly cautious I suppose

I kindly declined. It seemed to be fishy. We had not discussed terms but it just didn’t feel right. 

@Amber Smith - would you be interested in sharing your lender info? I am in NC and I found another lender whose terms were sitting right at what you described for local Bakersfield lenders. I am a newbie and would love lower terms! As I said, I reached out to the LP vi a number on the internet and they did not know what I was talking about. So it screamed scam to me.

@Kim Carter

Private money lenders don't have loan officers. I see more and more Hard Money Lenders use the term private lending. Private lenders are typically someone you know; family friends or people you have met at REIA meetings or other events. I have used many private lenders. If you have a great relationship with your private lender they will fund 100% of purchase and rehab. No payments till sale or refinance. Most HML will not do this.

Thanks Kenneth! I am talking to a private money lender tomorrow but right now I have been offered terms by hard money lender. Just learning.. so hope to chat with Amber Smith.

@Amber Smith when was it that you got that loan?

@Odie Ayaga I got this loan in January of 2020. 

@Amber Smith what was the lender you were able to get the loan from?

@Odie Ayaga Ill message you his info!

Originally posted by @Odie Ayaga :

@Amber Smith what was the lender you were able to get the loan from?

CA has the lowest rates in the country for HML NJ has about the highest has to do with foreclosure process.

and competition.. tons of money in CA  chasing too few deals.. 

in NJ it takes years to foreclose so risk is higher therefor rates are higher..

jan 2020  2 and 8.25 was offered by Lima one  and a host of CA lenders Civic  Anchor  Conventus Lendinghome  etc etc.

I am not sure if comparing what was offered in Jan of this year makes much sense. There has been a huge shift in markets with COVID and some lenders no longer exists. With that said, things are definitely balancing out again to pre-COVID figures. 

@Kim Carter I would also use the market place here or look up lenders on a more reputable site than FB. I would even check out Scotsman Guide if you are looking for a lender makes you more comfortable since they would have a marketing budget to advertise with them; helps to confirm they are a legitimate lender.  

Originally posted by @Daniel Molina :

 @Kim Carter I would also use the market place here or look up lenders on a more reputable site than FB. I would even check out Scotsman Guide if you are looking for a lender makes you more comfortable since they would have a marketing budget to advertise with them; helps to confirm they are a legitimate lender.  

Just be aware that none of these sites, including BiggerPockets, vet the lenders that are advertising on their site.  So even though the site itself may be legitimate, don't let that give you a false sense of security that the lenders advertising on it are.  They may be, or they may not be.  You still have to do your own due diligence.