Looking for a Private loan or Hard Lender

17 Replies

Where would I find Private or Hard lenders in my area? Trying to buy a house to live in, and do repairs. Thanks

Private lenders are just that "Private" They lend to people who they know and trust and my private lenders will not likely lend to you. They don't know you. A private lender network is something you build over time. 

There is a list of hard money lenders here on the site under the resource tab above.

Medium crab1 copyNed Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/

Hello

Be mindful of the fact that most hml lend only to llc's. Dealing with hard money is a great option when there is an exit strategy, ie a flip or a traditional refi as the rates and the points can be cost prohibitive. 

Generally hard money lenders will not let you occupy the property you're borrowing against.

Jon Holdman, Flying Phoenix LLC

This post has been removed.

@Jon Linn  

If you are able to carry $1600/mth rent, plus your other living expenses and obligations and have been self-employed (in the same business) for more than a couple of years, you should be able to sit down with a small local bank or credit union and place a mortgage ... unless your credit history is a mess.

Medium greenapartmenthires 1024x1024Roy N., Louer Louer Ltd. | 1.506.471.4126

If you're looking for the name of a lender you will need to post in the Marketplace.  That requires a paid account.

I'll repeat, though, that HMLs almost never allow you to occupy the property.  That makes a residential loan and HMLs make commercial loans.  Also realize that interest rates are typically 15% +/-.  So you're looking at a monthly payment of $875 on a $70K loan.  That's just interest.

Jon Holdman, Flying Phoenix LLC

Thank you Mr. Holdman 

Roy N.  Only have a year and the bank will not consider me. I am looking to find a lender for less then 2 year loan with balloon.

Originally posted by @Jon Linn :

Roy N.  Only have a year and the bank will not consider me. I am looking to find a lender for less then 2 year loan with balloon.

 Do you know anyone who might be willing, and able, to be your guarantor? 

Medium greenapartmenthires 1024x1024Roy N., Louer Louer Ltd. | 1.506.471.4126

No I don't. We are approved for 60,000.00. closing has to be completed in 30 days and loan officer said bank will take 45 to 60 + days. I was told to check out this site to see if anyone had an idea. 

Thank you everyone who posted so far. 

Originally posted by @Jon Linn :

No I don't. We are approved for 60,000.00. closing has to be completed in 30 days and loan officer said bank will take 45 to 60 + days. I was told to check out this site to see if anyone had an idea. 

 What about the vendor ... might they be willing to carry back a second on the property?

Medium greenapartmenthires 1024x1024Roy N., Louer Louer Ltd. | 1.506.471.4126

Please explain? 

If the purchase price is $70K, then with a conventional note for an owner occupied property (80 - 95% LTV here, depending on whether it is insured), you would be expected to bring $3.5K - $14K as down payment.

If you are approved for a loan amount of $60K, then you have a deficit of $0 - $6,500 once your down payment is added on.   If the vendor is willing to hold a second mortgage of, say, $6500.00 and the primary lender is agreeable to allow the vendor to hold the second mortgage, you should be able to close.

Medium greenapartmenthires 1024x1024Roy N., Louer Louer Ltd. | 1.506.471.4126

OK. I was told today that because all of the Obama crap, Closing on conventional loan will take 45 to 60 + days

The bank that has the property Told me I have to close in 30 days no matter what. I love the house and 5 acres , If I don't find  a lender to speed up the closing I will start looking at other properties. I really do thank you Roy for all your help. At least I'm learning a lot

@Jon Linn  

Oh, its and REO. Not likely the bank will carry a second mortgage.

Is your 60K approval from the same bank who holds the property?  If so, you may be able to convince them to defer Close to accommodate the speed of their own internal machinations.

Medium greenapartmenthires 1024x1024Roy N., Louer Louer Ltd. | 1.506.471.4126