Hard Money Sources - Which one is the best for the experienced?

Question

I am curious what source of funds everyone is using for deals.  Especially for those that have done a few more deals and have exhausted "Friends and Family" money.

Currently, I am considering using:

"Builder Finance"

"Finance of America - Commercial"

"Lending Home"

Most of these sources require that you have verified experience and when you include their points the mixed rate is 8-10% APR as best I can tell. Anyone have experience working with these lenders above or others like them and have feedback?

Besides cost ease of use is another huge factor that I take into consideration when trying to find the best source of funds. I have found it is worth it to pay more in interest so that I can spend the time finding other deals in lieu of chasing down a W-2 from 2 years ago etc.

Further relevant information.  I am in AZ and have 5M+- out at any one time on Flips and New Construction.

Chris Ellis · Answer

If you are looking at a bridge loan then 8% to 10% does seem pretty accurate when you are bringing experience. When it is converted into a long term loan or when you structure it upfront as a long term you can obtain lower rates.

The other question to consider is down payment amount requested. If you have experience like you mention, I may be able to get it to 90% LTV and 100% rehab on fix and flips. Then as high as 85% on LTC for new construction.

I'm pretty sure those other companies you mention will ask for your tax returns though. Definitely chase those down if you can.