I'm looking at short term financing options for a BRRR deal in New Bedford, Massachusetts. I cam across Finance of America Commercial and spoke with a representative who sent me over an application packet for a line of credit product.
Has anyone ever worked with them or similar hard money type lenders? I want to make sure they're legitimate before proceeding with the application process. Any insight would be appreciated!
Also, if anyone knows of any reputable private or hard money lenders in the New Bedford / Fall River area then I'd love to connect!
@Aaron Araujo ask me for some connections tonight and I will give you a few options based on your needs. I have a bunch of different local finance guys! See you then!
I figured you would, thanks @Gualter Amarelo ! See you later!
I've run across them. They advertise really good rates, but they have some pretty hefty junk fees. Last time I checked, they wanted me to pay $1,500 before even getting approved for a loan. I'm not a fan of lenders that make you pay money up front to apply for their loan.
Can't argue with that @Nghi Le , thanks for the input! I'm communicating with some local short term lenders that will hopefully work out better.
Don't forget national lenders!
I considered them for a deal I was working on. They were not super responsive and the terms were not as favorable as I was looking for. That being said they did refund my $500 application fee after I said I was not interested in proceeding.
@Aaron Araujo I just came across Finance of America and am considering using them -I am also based in MA. Do you mind sharing the other short term lenders you are using instead?
Bumping this up. Would love to hear everyone's feedback on FOA Commercial.
FOA advertises stellar rates on all of their programs, but the reality is that they underwrite like a bank and it will take 3-5 weeks to close the deal. They have a lot of fees, and I have broker friends who have stopped using them due to the poor customer service and communication. If you're willing to work for the rates and run the risk of not being able to close on time, then they're a viable option.
They're one of the many national HMLs that have introduced prohibitive amounts of red tape to their underwrite. DM me and I'll be happy to share more info.
I have to agree with @Stephen Herbert . They have fairly strict guidelines for a HML compared to someone you might find locally.
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