How to find private lender for terms you know work??????

Question

I know it is crazy to think but is there private lenders to talk to that will work with you on rates, terms...etc? I have a 6 unit all 1 bedroom 1 bath units. they are asking $625K. If I did $2500/mo for 25 years they make $125K. Would anyone work with that? Tried hand at seller financing but they just want to sell and retire.

Chris Seveney · Answer

No one would do that as others mentioned. I could put that in a risk free account right now and get $2600/month. For us, we would expect to receive $75,000/year in interest on something like that. So over 25 years we would be at 1,875,000. Thats to give you some idea of where things line up for where you are at compared to where the market is.

Jeff S. · Answer

If these are the terms that make your deal work, @Duane A. Snow, then you don’t have a deal.

Looking at it differently, instead of offering a lender a return that doesn’t even meet the rate of inflation, why don’t you offer your seller $200k for the property?  How would that go over?

These are terms you get from your mom, Duane, not from a serious private lender.

Erik Estrada · Answer

No that is not how it works. Unless you have a friend that is willing to do that favor for you. Lenders are not in the business to not make any money.

Patrick Roberts · Answer

If I'm understanding you correctly, you wanted a loan for 100% LTV at $625k with a 25yr amortization and a $2,500/month payment? That's a yield of 1.5%. I feel like I missing a piece of information here.

If this is accurate, these expectations are wildly unrealistic.

Brandon Croucier · Answer

Umm thats not how that works..

Time is money and honestly (125k/468k) is a 1% return. You can get more in a CHECKING account today.

Would love to connect and go over what is realistic on the lending side.

Account Closed · Answer

I use software from the hedge fund I work with a hedge fund that connects TO 4500 BANKS, LENDER, AND CREDIT UNION I can take a scenario to add it to my search engine it runs many different quotes so when I'm working with clients I put 5-10 quotes in from of them and save them lots of time and money and they go with the best program that fits the deal

Ray Hage · Answer

I am a private lender. Let me tell you, private lenders' rates are higher than the banks and they generally don't over 1-2 years. You'll need to get a loan through the bank and even then, you'll have a higher cost than 2500/mo

How to find private lender for terms you know work??????

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