Rental Property Investor · Phoenix, AZ · Member since 2015 · 224 posts · 50 votes
I got a solicitation in the mail from Bankers Healthcare Group, claiming this "invite only offer" to select pharmacists. Normally these get trashed without further thought, but I was just curious if this is a known lender out there and what their game is? Of course I can follow the personal link they gave but then that opens me up to countless more solicitations.
Rental Property Investor · Liverpool NY/Utica, NY · Member since 2018 · 76 posts · 10 votes
4y
@Jeffrey Knapp I’ve used sofi a few times I paid both loans off after refinancing properties I’d much rather take the credit it to get that 100k from SoFi each time because after you pay them off they’re willing to give you 100k each time and installment loans boost your credit pretty good. They’re super easy to work with
Anderson, In. · Member since 2018 · 9 posts · 1 vote
6y
Hey gang. I'm in the same boat as you guys. Trying to vet them right now. Have sent in some information to them to try and see what rates they can give for a self storage start up.
Anderson, In. · Member since 2018 · 9 posts · 1 vote
6y
Hey gang. So actually just spoke with them a few minutes ago. I originally applied for $150k for property acquisition. Got approved for $65K. Very much like a hard money lender, in that initial offer is low and offering to partner up and form a relationship for future deals. They provided me with three options. See below verbatim from recap email from loan officer.
Key Benefits to this Loan:
NO interest and NO payment for 85-89 days!!
Loan does NOT appear on your personal credit report!!
Interest and fees tax deductible for commercial purposes!!
Pay loan off at any time with no pre-payment penalty fees!!
Work with the company that has lent more money than ANY lending institution in THE USA during the pandemic!!
Option 1: $65,000.00 Net Loan Proceeds $1,156.21 Monthly Payment 120 Month Term 13.99% Fixed Interest Rate $2,995.00 Documentation Fee $1,950.00 Reimbursable Servicing Fee $4,550.00 Optional Limited Personal Guaranty 48 Month Lockout No Pre-Payment Penalty $74,495.00 Total Financed Amount (Includes Documentation Fee, Reimbursable Servicing Fee, and Optional Limited Personal Guaranty)
Option 2: $65,000.00 Net Loan Proceeds $1,225.53 Monthly Payment 96 Month Term 12.49% Fixed Interest Rate $2,995.00 Documentation Fee $1,625.00 Reimbursable Servicing Fee $4,550.00 Optional Limited Personal Guaranty 48 Month Lockout No Pre-Payment Penalty $74,170.00 Total Financed Amount (Includes Documentation Fee, Reimbursable Servicing Fee, and Optional Limited Personal Guaranty)
Option 3: $65,000.00 Net Loan Proceeds $1,306.04 Monthly Payment 84 Month Term 11.99% Fixed Interest Rate $2,995.00 Documentation Fee $1,462.50 Reimbursable Servicing Fee $4,550.00 Optional Limited Personal Guaranty 48 Month Lockout No Pre-Payment Penalty $74,007.50 Total Financed Amount (Includes Documentation Fee, Reimbursable Servicing Fee, and Optional Limited Personal Guaranty)
Overall, I was impressed with the loan officer I talked with. This is a great product for the right person. Unfortunately, it's too little for what I need and the interest property isn't cash flowing that well yet so this deal doesn't make sense for me at this current time. Maybe in a year when I have stabilized and improved cash flow and am able to consider some of the major capital improvements that I want, I will explore this option again.
Hey all, just found this thread and wanted to reach out again. Did anyone end up actually going through with them? I have been getting stuff from them for a long time now, but just spoke with someone about getting a quote.
My thought was to use them to purchase fix-and-flip/BRRRR properties with straight cash, and basically try doing the delayed financing approach where I put the rehab cost on the HUD for the ones I want to BRRRR.
Big benefit I see with using BHG vs a traditional HML is
1. No lien on the property so I have the ability to do delayed financing
2. I can make true cash offers (no worrying about HML underwriting, appraisal, SOW, draw fees, etc..)
3. Opens up the ability's to purchase from auction
@Joe G. so they go by your income and credit score as to how they provide your rate. They quoted me with a 2% origination fee plus an annual interest rate of 11.24%, no prepayment penalty. At this point I haven’t decided if I should do it or not. I was hoping I would find someone who has used BHG before...
Anderson, In. · Member since 2018 · 9 posts · 1 vote
5y
@Michelle Lin, I elected to not go with them as the deal fell through. Interesting through, after I applied they started me out at like 12-13% I think....after holding out they later dropped it to 9.99%.
@Tim Hall oh wow. I'm still debating because I have not found anyone who has used them. Their terms a better than a typical hard money lender though.... But since I can't find anyone who has tried them, I don't feel comfortable yet going with them
Temple, TX · Member since 2018 · 307 posts · 215 votes
5y
@Michelle Lin, I feel the same way. I keep seeing comments about bad experiences with them and since I have not heard of anyone actually using them, I will likely not use them. While their terms and flexibility could possibly be better than a typical HML, I feel that getting a good relationship with a HML or a PML would be more beneficial.
Investor · Thousand Oaks, CA · Member since 2016 · 44 posts · 17 votes
4y
Hi team,
I got to know about BHG and looking for someone who had experience with them.
I m also interested in a good commercial lender for under $200K if you know. The ones I come across, their expenses are way too much for the loan amount I m looking for. if you have a great experience with a commercial lender, please share here or message me.
Hi Everyone - I did use these guys successfully and closed a deal back in Jan. Terms were about as they initially stated, although most items are negotiable. I used them to fund a bunch of misc projects across various properties: roof, siding, painting etc and had the flexibility to use the funds as I needed.
A few points:
- Interest rate goes off of your credit. They knocked a few points off when I said I had to think about it.
- No pre-pay penalty but the "48 month lockout" is a form of pre-pay. I negotiated that to 24 months.
- Documentation fee can be negotiated.
$1,462.50 Reimbursable Servicing Fee - this is supposed to be refundable as long as you don't miss any payments. $4,550.00 Optional Limited Personal Guaranty - this is waived if you assign them for your life insurance policy for the amount of the loan. Since I had a $1M policy, assigning them $65k was pretty straight forward.
Loan closed pretty quickly, funded to my checking account the next day after closing, doesn't report to personal credit.
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
4y
@Ed Blackshear Hi Ed - it means you're locked in to pay the interest for 48 months no matter what. So to me, it's still a pre-pay penalty. I was able to negotiate mine to 24 months which I'm OK with.
Rental Property Investor · Liverpool NY/Utica, NY · Member since 2018 · 76 posts · 10 votes
4y
@Tom S. gotcha I called them we have a local office where I live I’m looking for 100k for mY next deal if you don’t mind me asking how much did you get?
San Francisco, CA · Member since 2018 · 4 posts · 3 votes
4y
Just wanted to add my two cents to this post since it seemed relevant. I ended up closing with Bankers Healthcare Group (BHG) for my property loan. Here are my thoughts listed below.
Terms:
$100,000 Net Loan Proceeds $1370 Monthly Payment 144 Month Term 10.49% Fixed Interest Rate $2,995 Documentation Fee $2,400 Reimbursable Servicing Fee $8,000 Optional Limited Personal Guaranty 0 Month Lockout (No Pre-Payment Penalty) $113,395 Total Financed Amount
I worked with them on the interest (got them down from 13.49 to 10.49. Also got them to take the lockout from 48 months down to 0 months. The limited personal guarantee (basically is insurance that you pay if you die before the loan is paid out). You can get around paying this if you put them as a payout on your life insurance policy. However, I only have a 10-year term life policy and the loan is for 144 months which means they won't do that. Could have reduced the amount of time to lower than what was left on my term life.
Pros:
The loan got funded
No credit check
No credit score hit for a new loan
Cons:
Impossible to do anything online
Online calculator does not really reflect anything accurately from them
There is absolutely no online portal (NOTHING). For 2022 it's strange you can't even check a balance online
The simplest tasks require a phone call, then emails over several working business days then more phone call*
New amortization schedule? Call and they send an email.
*An example. I wanted to change the account from which the money is drawn. Thought it would be simple to call them up and have the account changed. Instead it's not done over the phone, they send you a form via email. Took 2 business days. The form required a voided check which for a savings account I don't have a check...plus it's 2022, every major banking institution just used Routing and Account numbers. Called BHG, informed me I needed a form from my bank with My name, Account, and Routing number. Got the form from my bank. Sent it over, can't have a beneficiary on the savings account for them. Called my bank and moved the beneficiary off. Got new form from bank. Sent it to BHG. No update if the form was accepted. This is just to change accounts to pay them.
Overall:
You'll usually get funded, but with somewhat / to horrible terms depending on your negotiation skills and credit score / W2s. Just feels clunky to use them (blasting out lots of mailers, everything done over the phone, email, and is SLOW TO DO). I refi'd with SoFi and the loan application took 15 minutes. I was approved in a day. The forms were signed in two. I was funding at the end of day 2, AND I have web and mobile apps to monitor the balance. Sure it's a ding on my credit, but my motto is if you have the ability to use your credit do so, don't put it on a shelf. #tencents
Rental Property Investor · Liverpool NY/Utica, NY · Member since 2018 · 76 posts · 10 votes
4y
@Jeffrey Knapp I’ve used sofi a few times I paid both loans off after refinancing properties I’d much rather take the credit it to get that 100k from SoFi each time because after you pay them off they’re willing to give you 100k each time and installment loans boost your credit pretty good. They’re super easy to work with
Thank @Jeffrey Knapp and @Tom S. for sharing your experience… so it sounds like you wouldn’t use BHG again because of the difficulties in not being able to do things online and also having a 48 month lock for paying interest?
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
4y
@Michelle Lin Hi Michelle - on my side, I would use them again as it was still a pretty smooth experience overall. As I mentioned in my original post, most items were negotiable including the 48 month pre-pay (I got 24 months). Their interest rates were comparable to other companies like Discover and SoFi (both of which I've used). But BHG doesn't report to your personal credit, so that was handy to not have a hit to my credit report.
Hi Everyone - I did use these guys successfully and closed a deal back in Jan. Terms were about as they initially stated, although most items are negotiable. I used them to fund a bunch of misc projects across various properties: roof, siding, painting etc and had the flexibility to use the funds as I needed.
A few points:
- Interest rate goes off of your credit. They knocked a few points off when I said I had to think about it.
- No pre-pay penalty but the "48 month lockout" is a form of pre-pay. I negotiated that to 24 months.
- Documentation fee can be negotiated.
$1,462.50 Reimbursable Servicing Fee - this is supposed to be refundable as long as you don't miss any payments. $4,550.00 Optional Limited Personal Guaranty - this is waived if you assign them for your life insurance policy for the amount of the loan. Since I had a $1M policy, assigning them $65k was pretty straight forward.
Loan closed pretty quickly, funded to my checking account the next day after closing, doesn't report to personal credit.
@Tom S.Hi. I was reading your comments were you able to pay this off early without any other fees being added? I saw in the contract that they could add fees if you choose to pay off early. Have you been able to pay any extra on the loan? They told me I couldn’t pay anything extra before the prepayment penalty period. Overall, how has the experience been with them? Thanks