Real Estate Broker · Sierra Madre, CA · Member since 2015 · 72 posts · 22 votes
Hey fellow BP'ers,
My business partner and I are looking to become a private lender to flippers and investors in Los Angeles and Orange County. I wanted to take a small poll on what rates private money lenders are using for their clients. I know it is a much more profitable way to go, as the private lenders do not charge as many points as a HML, if any and maybe the closing costs are a little cheaper. We want to be fair and also bring value to the deals, and be able to form long term relationships with flippers and investors. We are also realtors and we know how to analyze deals but would be hands off on most or all of the projects! Thank you for any feedback!!
Loan Officer / Processor / Life & Health Agent · Rancho Cucamonga, CA · Member since 2014 · 1k+ posts · 757 votes
11y
Hello Scott,
Since these are typically short term loans I would recommend something in the 6.5 to 9.5 percent range depending on the risk. The main factor here in my opinion are junk fees. If you can be less dependent on these fees you'll help investors and make a lot of coin moving forward. A win win for both parties is a great formula for sucess.
Investor · Dana Point, CA · Member since 2015 · 5 posts · 0 votes
11y
Hi @Scott Winnie, we borrow from our private lenders around 10-11% depending on the deal we have. I'm an Orange County flipper, and we're always looking to add to our lending team. If you are interested in potentially partnering, I'd be happy to talk about how we could work together.