Private Lender Terms

[Michael Aragones]

Hello Bigger Pockets, I am looking for a lender with terms that fit my investment goals.

My name is Michael A. Aragones, and I am owner of Capital Bird LLC. I have a background in Engineering, Business and Commercial Real Estate. I invest in small to medium size multi-family apartments in the West Central Florida Area.

My strategy is to buy & hold value add properties with positive cash flow and or built in equity.

For this type of investing I would need a higher 80-90 Loan to Purchase Amount (LPA not LTV)* Depending on the amount I would commit in rehabbing the property and equity at time of purchase. (Lender would have first note on the property).

If a property meets your requirements and decide to fund my purchase: I would require an immediate proof of funds letter to get property under contract and a deposit of funds into escrow within a 2 week – 3 week inspection period. (To protect my escrow deposit funds). Within that time, I will provide you immediate access to any inspection reports and important information required or requested.

Terms:

Year Loan 10-30

Points 0-4

Interest Rate 5-12%

Penalty for early pay off depends on other factors

* LPA because buying the property with built in equity means your not loaning based on appraisal value but on purchase price. (I should start a new post because I know everyone uses LTV)

If you made it this far down then please feel free to contact me with any questions, I can send you a full report on a property I am looking to fund.

[Charlie Fitzgerald]

Michael,

The LTV is the amount of the Loan as a percentage of the Value of the property. The "value" of the property is what you and a seller have agreed to transfer that property from them to you for, i.e.: the Purchase Price. For lenders, we are going to loan a percentage of the lesser of the two of these. So if you have a property that has an as-is value of $200,000 and you and the seller agree that you will buy the asset for $175,000, our loan is going to be based on the $175,000 and we will loan you a percentage of that and that percentage is the LTV, (60%, 70%, 75%, etc.)