I'm looking to fund deals and am curious about opinions/experiences on crowdfunding sites vs private money etc. Location is Denver, Colorado. Thanks in advance!
- Crowd Funding, Colorado, Denver area, vs. Private money, Lending -
You might first check the requirements and cost of crowdfunding sites. This may help your decision. You have given no indication as to the size of the deal, your experience, or your own financial resources.
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Develop a relationship with a couple of local HM lenders. It's nice to be able to pickup the phone and know you have funds available to close a deal.
I️ would be more than happy to answer any questions you may have regarding the topic.
Feel free to reach out anytime!
Have you started talking with your friends, family, and co-workers? I have found that there are actually a lot of people with similar interests and goals for investing among the people I interact with on a day to day, and a lot of them have money just sitting around.
@Matt M. Thanks for the advise. Any local lenders you recommend ? (Feel free to PM me)
@Wesley Jeanette - That’s been my approach in the past, however, being a teacher... there’s not a lot of people in my field with money. I’m kind of rare with my investment desires/goals. Family -also many teachers- Finding it just difficult to encounter anyone with extra money in my circles-or just any money ; )
Current deal - I’m literally buying the house across the street from my primary as an off market deal. I realize that some money is better than no money, but that leaves tighter margins if something else comes up, market changes, etc. I’ve considered just wholesaling it, but I’d like to make more than a wholesale would likely bring in on this deal. Cheapest Hard Money I’ve found is 3 points 10% interest only... looking for other options loans for less than $250K-$300K.
@Matt M. I've looked into Pine and been to a number of their events - 4points and 15%. Do you have any experience using them?
@Rod Stanback - Thanks for reaching out. I've looked at your site - I'm interested in the fix and flip as well as the rental loans. I couldn't find anything about lending in Colorado or points and %. Any insight would be helpful.
@Seth Rouch you might want to join AAPL and use their resources in making a decision on which way to go.
@Adam Schneider Thanks for the suggestion... though I'm not sure what AAPL is and when I google search I get Apple stock info. : ) Though I'm a fan of their product, I'm pretty sure that's not what you were suggesting.
@Seth Rouch sorry about that...American Association of Private Lenders = AAPL
Lending home they are cheaper than your local guys
lima one as well
Conventus in SF is about 10% 5 points and 15 % is on the VERY high end of todays rates .
@Seth Rouch your 10% and 3 points is pretty good for local hard money. Anything less than that and you are probably going with someone who is not really a hard money lender but just someone has money. Interest rates are moving up and I have found hard money creeping up as well. If you want the project to cost you less, do it faster. You might figure out a way for the current owner to get a piece of the pie as well. Have you ruled out conventional lending? You probably have equity in your current home. You can get a HELOC for the own payment on that and then a conventional loan against the house your are buying. If you don't have the bandwidth for that, then you are just going to have to pay the price. Partnering is another way but usually you give up more of the money than with hard money.
@Bill S. Thanks for the ideas. I have ruled out conventional as my DTI is not going to allow for enough of a loan. I believe on this particular project I can get it done in 2 months or less, then 3-45 days for closing. Similar houses are only sitting for 6 DOM. I've already got a HELOC leveraged in another property, but that is a great way to use an asset to build assets. I'm interested in partnering, but much of my network is teachers... they don't have the money. (Surprising? Haha). I am trying to convince the seller to do an owner carry and I'll pay the rehab costs and give him his bottom line while making what I need. I hope he takes me up on this as it would allow for a pretty good win/win.
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