Hard Money Lender Recommendations

2 Replies

Hello BP fam,

I am working on acquiring a 9-unit residential building in Ohio. I am under contract for $215k. I originally was planning on obtaining conventional financing but upon flying out and visiting the property, I realized it was majorly in disrepair. I met with contractors while out there and received bids around the $35k-45k mark to renovate 7 of the 9 units. 2 are currently occupied with "stable" tenants. I was initially planning on going with a big lender with a nice 15 or 20 year amortization schedule, but based on the current condition of building - I am limited to HML's I believe. Plan would be to BRRR it and I know I can get great rents for the units once it is renovated & up to speed.

I see a few online Hard Money lenders, and I have called my local lender friends which have lead to wild goose chases, and various application fees. Currently, I am considering Finance of America Commercial, and a few unheard of brokerages with pretty high fees. What are typical points and rates associated with these kind of loans assuming 20-25% down?

Thanks in advance!!

HML's would likely be in the realm of ~10 and ~two points.

If you lean towards going the HML route, I would be pleased to discuss the details.

Cheers.

Originally posted by @Rupesh Singh :

Hello BP fam,

I am working on acquiring a 9-unit residential building in Ohio. I am under contract for $215k. I originally was planning on obtaining conventional financing but upon flying out and visiting the property, I realized it was majorly in disrepair. I met with contractors while out there and received bids around the $35k-45k mark to renovate 7 of the 9 units. 2 are currently occupied with "stable" tenants. I was initially planning on going with a big lender with a nice 15 or 20 year amortization schedule, but based on the current condition of building - I am limited to HML's I believe. Plan would be to BRRR it and I know I can get great rents for the units once it is renovated & up to speed.

I see a few online Hard Money lenders, and I have called my local lender friends which have lead to wild goose chases, and various application fees. Currently, I am considering Finance of America Commercial, and a few unheard of brokerages with pretty high fees. What are typical points and rates associated with these kind of loans assuming 20-25% down?

Thanks in advance!!

I don't think Finance of America Commercial will do 9 units.  They are more geared toward the 1-4's.  You're looking at 10 and 2-3 points with 25% down to be normal.

Stephanie 

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