First Call With a Private Lender

5 Replies

I have my first call with a private lender set up for tomorrow morning. I'm an experienced investor that knows my numbers and market. The lender is interested in pursuing funding in our area. Are there any specific questions that are good to ask besides the obvious discussion of lending terms? 

As an experienced investor you should know that you do not meet people on the internet and expect to do business and not get scammed. You should deal with local businesses that you can go to their office or meet with them in person. 

Your first experience should not be on the phone, it should be in person. There are waaaaay too many people who are lending that are at the REIA meetings.

@Rick Pozos I invest out of state and I haven't met a single realtor, contractor, lender, etc that I've done business with yet. Most have been referred to me through word of mouth or forums, but each lender I've done business with I simply found by browsing online. There's always a level of risk but if you do you research and seek out reviews, 3rd party references, etc you can easily avoid scams for the most part. 

@Ben Sears I'm assuming you're seeking a fix and flip loan. Besides general financing term questions, I generally ask: For financing rehab, do you advance the funds or just reimburse? Do you use an Appraisal Management Company (AMC) or independent appraisers? What is your average turn time? Do you have any issues with rehab budgets exceeding the purchase price? What are you asset reserve requirements? How long is the credit report valid for before you have to pull it again?

Originally posted by @Rick Pozos :

As an experienced investor you should know that you do not meet people on the internet and expect to do business and not get scammed. You should deal with local businesses that you can go to their office or meet with them in person. 

Your first experience should not be on the phone, it should be in person. There are waaaaay too many people who are lending that are at the REIA meetings.

I've got to disagree with you.

100% of the loans we closed last year were done by phone and internet.  Many companies have business models that allow for a wide base of clients where physical offices make no sense.  In truth, it's inconvenient to be tied to an office and many clients don't care where we sit; just that we answer our phones, respond to emails and make sure the appraisals, insurance and anything else we were supposed to do got done.

Frankly, we're finding the REIA's and meetups are full of; people who want money for nothing, people who are looking for 100% financing with 500 credit scores, and gurus selling "mentor" and "mastermind" programs.

Stephanie

 

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