I have a deal that I'm looking for hard money lender.

[Brandon Teachout]

I have found a deal that I am trying to get funded by hard money/private money. I have an investment strategy and multiple exit strategies along with a lot of equity in my primary that I'm willing to use as collateral. I have contacted Flynn Family Lending and waiting to hear back from the application I submitted. I'm looking for a backup plan incase that does not work for me, any suggestions on who to talk to or a route to go for hard money funding? Thanks in advance and I hope to connect with more of the greater Seattle (mostly north) area investors. Stay warm out there!

[Andrew Bang]

Try Ironbridge lending, they are up there in the PNW. 

[Brandon Teachout]

@Andrew Bang Thank you! I will definitely look them up.

[Brandon Teachout]

@Erik Estrada Thank you for the info, I did not know that hard money lenders are back up right now.

I have been working hard to cover all my bases for a hard money loan, so I’m glad to hear I’m on the right track. Beyond the foundation I’ve established, what more should I be looking for to facilitate a loan?

[Jonathan Taylor]

@Brandon Teachout what are you looking to do? Private/Hard money is the more expensive lending tool out there but Fix and flip/ DSCR lenders are still lending today with no signs of slowing down. Can you elaborate on what you are needing and if theres a cheaper option, this is the market to save money in.

[Erik Estrada]

Quote from @Brandon Teachout:

@Erik Estrada Thank you for the info, I did not know that hard money lenders are back up right now.

I have been working hard to cover all my bases for a hard money loan, so I’m glad to hear I’m on the right track. Beyond the foundation I’ve established, what more should I be looking for to facilitate a loan?

 Sent you a PM!

[Jay Hinrichs]

in no particular order 

1. Iron Bridge  Portland based.
2. Conventus  SF based  lowest rates for prime borrowers that I have seen.
3. Kiavi   SF based
4.East side funding  Seattle based.

that should get your deal done !!!  I have done bizz with all of these and they are real and fund.

[Brandon Teachout]

@Jonathan Taylor Thanks for asking! I currently have a primary that I started house hacking by converting the detached garage into a 700sqft 1b/1b unit that I rent to travel nurses, $2,500 a month.

Step two is underway with a remodel, new kitchen, floor and adding a shower to the second bathroom. I’m planning to rent the rooms out individually to travel nurses and create a house for traveling professionals. My house is less than .5 to a major hospital in the area. 4 beds x$1,200=$4,800+$2,500=$7,300 cash flow each month. This is a strategy that I’d like to repeat next to each major hospital in my area.

The property that I found and would like to purchase will be used as my new primary, and I plan to convert a large barn into a 2bed/1bath DADU to rent out as well. $3,500 month.

The rental numbers I’m basing this off of are my current unit is rented and I had multiple inquiries at that price point, and the comps on Furnished finder reflect this as well.

Does this sound like it would be a candidate for a DSCR loan, this is a new term for me.

Thanks in advance!

[Brandon Teachout]

@Jay Hinrichs I really appreciate this! I will absolutely keep this list close and start reaching out. :)

[Jonathan Taylor]

@Brandon Teachout Sounds like you are doing short term rental. Generally a lease less than one year lease is considered short term. This STR lending market is taking a beating. If your property can qualify under long term market rents, that would be your best bet. My lenders are not lending based on STR numbers. This has been happening over the past few weeks.

[John Barrett]

@Brandon Teachout You might also reach out to Rain City Capital or Certain Lending. Rain City is a traditional hard money lender and Certain Lending is a DSCR lender.

John

[Brandon Teachout]

Quote from @Jonathan Taylor:

@Brandon Teachout Sounds like you are doing short term rental. Generally a lease less than one year lease is considered short term. This STR lending market is taking a beating. If your property can qualify under long term market rents, that would be your best bet. My lenders are not lending based on STR numbers. This has been happening over the past few weeks.

So is there no difference to a lender for any lease terms under a year? There is a lot of talk around "STR" vs "Midterm rentals" so it would make sense to me that those are two different things as STR would be under 90 days and MTR would be 90+ days. Have you seen anything that would indicate new loan terms based on these mid term leases?

I understand that you're currently saying that it is STR under a year but is that subject to change based on new strategies in investing?

I have previous long term leases but I'm not sure that I will return to that model now.

Thank you!

[Brandon Teachout]

Quote from @John Barrett:

@Brandon Teachout You might also reach out to Rain City Capital or Certain Lending. Rain City is a traditional hard money lender and Certain Lending is a DSCR lender.

John

Thank you @John Barrett! I will certainly look into Rain City Capital, they already sound like they are my neighbors! :)

[Jonathan Taylor]

@Brandon Teachout I speak from a lending perspective. STR and MTR are investor terms not lender terms. I have no lender in my network that differentiates between the two. When I submit refis, we accept one year leases or MTM leases with a history of tenant being there over a year. My opinion does not mean it is not possible and we are in a changing market but I have not seen nor have a I spoken to a lender who would take a MTR over a STR. As far a UW goes, they are one of the same.

[Brandon Teachout]

Quote from @Jonathan Taylor:

@Brandon Teachout I speak from a lending perspective. STR and MTR are investor terms not lender terms. I have no lender in my network that differentiates between the two. When I submit refis, we accept one year leases or MTM leases with a history of tenant being there over a year. My opinion does not mean it is not possible and we are in a changing market but I have not seen nor have a I spoken to a lender who would take a MTR over a STR. As far a UW goes, they are one of the same.

@Jonathan Taylor Ah ok, that's great to know, I really appreciate the insight! :) And makes me think my next post will be commonly mistaken "lender terms vs Investor terms" haha

So would these lease terms be taken into account on all loan types as far as new purchases or refi or HELOC?

[Sherief Elbassuoni]

@Brandon Teachout, try Certain lending, east side lending, or Flynn Family

[Marc Stevenson]

I use Marshall Reddick out of Ca. for all my hard money when buying here in Texas.  Ask for Levi!  They're great to work with.

[Stephanie Miller]

I agree with @Marc Stevenson, Marshall Reddick is easy to work with and they have great terms.

[Eliott Elias]

@Robin Simon with Easy Street 

[Yohannes Haim]

Raincity Capital in Kirkland, Wa. I really liked working with them.

[Dave Skow]

@Brandon Teachout- thanks -  do you  definitely need a hard money loan ?   Have you  reserached  " regular"  loan alternatives / options ?

[Account Closed]

Hi, Brandon. Would love to discuss!

[Jay Thomas]

The STR market is certainly feeling the effects of recent events, and it seems that lenders are not comfortable loaning based on these rental rates. It's best to try and qualify for long-term rentals if possible because this could give you a better chance of getting approved for financing. Hopefully, this situation will improve over time as people begin to adjust to the new reality. In the meantime, it's important to stay informed and find ways to make your property more desirable to potential tenants. Good luck!

[Yohannes Haim]

Quote from @Dave Skow:

@Brandon Teachout- thanks -  do you  definitely need a hard money loan ?   Have you  reserached  " regular"  loan alternatives / options ?

 Hi Dave, I'm interested in learning about alternative loan options are their other options for funding distressed buildings besides are hard money and private money? 

[Michael Kinsella]

A probable way to increase options quickly is...

BiggerPockets --> Network --> Hard Money Lenders --> Filter by state

Additionally, you can speak with local investors and see whom they've have good experiences with.