Hard money lender up front fees

6 Replies

Has anyone worked with Blackburne & Sons in Sacramento, CA?

http://www.blackburneandsons.com/

They seem legitimate and they've been around a long time.  They have done their due diligence and offered fair loan terms.  They never over-promised anything.  My only concerns are:

1. They are in CA and I'm in OH.

2. They won't let me pay for the $3,500 appraisal, which understandably has to be done before closing, directly to the appraisal company.

I've had an extremely tough time finding a HML in Ohio for big multi-family buildings so I'm prepared to go on gut feeling with Blackburne. I'd could really use your feedback.

HML can do nationwide funding with wire transfers. Can you elaborate on the appraisal. Are they saying that they don't want the loaned money to be used for appraisal? Also are you doing a buy and rent for the multi family or rehab? What are the terms for the loan and the interest and time?

Originally posted by @Account Closed :

HML can do nationwide funding with wire transfers. Can you elaborate on the appraisal. Are they saying that they don't want the loaned money to be used for appraisal? Also are you doing a buy and rent for the multi family or rehab? What are the terms for the loan and the interest and time?

 I don't think the appraisal fee will be "credited" at the closing and tacked on to the loan amount.  That part I'm not worried about.  It's the fact that I have to pay it and have little recourse if the lender is a thief.

I am doing a buy and hold on a multi-family that needs $50k max of rehab (it's not a vacant building).  I can pay for the rehab out of pocket later.

Their offer is a 15 year note amortized over 30 years with 11.99% interest, 3.5 pts at closing. A 15-year is a pleasant surprise; I want a min of 2-3 years. I am paying for 60% of the purchase price from my savings and 40% HML.

@Stone Teran

  two things I look for is the NMLS # on website : Check

California brokers license on Webstie :  Check

now just to the state  agencies and look up those license numbers you will see if they are in good standing had complaints of a serious nature etc.

just by looking at their web page for 30 seconds I would say they are most likely legit.

but do check on the state sites to verify.

Originally posted by @James Wise :

What size building is this that your getting appraised?

 50 total apts located over 4 side-by-side buildings in 1 parcel.

Thanks Jay, that is great advice!

@Stone Teran

  there are new laws for lenders about paying for apprasials.

for instance I cannot pay for apprasials direct my bank has to order them then charge me for them... so this seems normal

One reason the lender clearly needs to be the one the appraisal is being made for not you the borrower.. it goes to the E and O insurance as well.

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