I heard Eastside has stopped funding off-market deals? Have you been able to get a loan from them recently?
12% and 2pts sounds pretty expensive, especially for a 5-month loan. When I did a couple of loans with them a few years ago, they were going to charge 5pts on the rehab funds, so I decided to only do a purchase loan. Is that still true?
I honestly don't believe anyone should be paying double-digit interest rates for hard money, and I'm on a mission to change that. I closed on a flip last month at 8.54% interest, 1.25pts, 95% of purchase and 100% of rehab, and 9 months for the loan term with extensions being 1pt for every 3 months. I believe ESF is 1pt for every 45 days for extensions. Just be really careful with those 5-month loans, especially in the changing market we are in today. Houses are sitting.
Flipper/Rehabber · Federal Way, WA · Member since 2018 · 24 posts · 9 votes
8y
We have not pulled the trigger yet with them, but I did find a close circle friend that has used them in the last few months and it went very very well. As soon as I get a property under contract I will be happy to post more outcome related news. FYI Eastside Funding was able to get me to a 10% DP with 3 points. Pretty nice thus far.
Maple Valley, WA · Member since 2017 · 8 posts · 1 vote
8y
We used Eastside on 3 flip deals last year and two this year so far. They have been easy to work with. We have not had any issues with them. Once the get all your info they can turn a PoF on deals for you real quick which is nice. But, with any hard money lender don't dilly dally with your projects. :)
Flipper/Rehabber · Federal Way, WA · Member since 2018 · 24 posts · 9 votes
8y
Thanks Rick! This sounds like a good fit. We are all set up with Eastside now and working towards securing a property under contract. Numbers are favorable for HML, 2% origination fee, 12% interest, 90% LTV/100% rehab. This is the best terms I have seen in the market thus far. I will be sure to do a follow up in a few months once the process is nearing the end. Thank you all for the input and good luck on your REI journey!
I heard Eastside has stopped funding off-market deals? Have you been able to get a loan from them recently?
12% and 2pts sounds pretty expensive, especially for a 5-month loan. When I did a couple of loans with them a few years ago, they were going to charge 5pts on the rehab funds, so I decided to only do a purchase loan. Is that still true?
I honestly don't believe anyone should be paying double-digit interest rates for hard money, and I'm on a mission to change that. I closed on a flip last month at 8.54% interest, 1.25pts, 95% of purchase and 100% of rehab, and 9 months for the loan term with extensions being 1pt for every 3 months. I believe ESF is 1pt for every 45 days for extensions. Just be really careful with those 5-month loans, especially in the changing market we are in today. Houses are sitting.
Flipper/Rehabber · Federal Way, WA · Member since 2018 · 24 posts · 9 votes
8y
I would love to get into a deal like you just said!! And yes everything you mentioned on Eastside is true. I think they are having some serious money issues and just halted really everything.
Do you have a contact for the above mentioned financing? I would love to hear more.
We currently have 3 flips with ES & 1 with RC. 8% is certainly easier on the wallet.
I think you mean Magnolia, which shares similar ownership to RCP? That's their cheaper, more competitive arm, but has more underwriting constraints.
When it comes to flips, especially the quicker ones, it's not the rate that hurts you, but the points. Most lenders are charging 2pts these days, but I'm starting to see that approach 1pt or less, especially for experienced borrowers.
Flipper / Buyer · Tacoma, WA · Member since 2013 · 160 posts · 80 votes
7y
@Trent Parker I personally haven't had any issues with eastside funding and have used them quite a bit. I have one currently with them. The other deals I have are private money but I still usually have at least one deal with them going at all times. I believe I just closed (sale side) on another that they funded. I do know they have stopped funding in lewis county as they couldn't fund one of mine down there. But they have recently funded one in Olympia and one in Tacoma. Their requirements for a down payment went to 20 percent I believe in oly for most buyers but Pierce and King are still 10 percent. Not to mention they have closed mutlitiple deals for me in under 5 days. (when a cash buyer failed I had gotten the call).
That being said give @Nghi Le a call I keep hearing good things although I haven't been able to make it to one of his meetups yet to talk.
Flipper / Buyer · Tacoma, WA · Member since 2013 · 160 posts · 80 votes
7y
@Spenser Harding what are you currently doing down there. Im all over I-5 and do a few deals here and there in that area. What do you like down there or if you are wholesaling put me on your list if you don't mind. Thanks
Rental Property Investor · Tacoma, WA · Member since 2014 · 117 posts · 35 votes
7y
@Kevin Scott I messaged you. We are wrapping up a flip. Not sure if marketing it or renting it at this point. But we would like to get into multi family down there. We live in Tacoma and it is a drive but growing.
Flipper / Buyer · Tacoma, WA · Member since 2013 · 160 posts · 80 votes
7y
@Spenser Harding nice. I'm in Tacoma as well, near the glass museum. We used to do around 10 deals per year in Lewis County not sure if we will hit that number this year, most of our stuff is further north closer to Tacoma but I don't mind that area at all, its where I started way back when. I might be starting a smaller development 36 unit fourplexes in that area but its early. Will let you know if I move forward on it.
I did a deal with Eastside funding in late 2017. I would be willing to do business with them again.
My overall comment is that they are "Expensive But Worth It".
Here's the story: I wanted to buy a property which had serious bad paper After six months of negotiations with the various parties involved, they agreed to do the deal, on condition that I close in 7 days. Eastside got the money to the title company in (as I recall) two days and two hours.
There is no way a that conventional lender would have even scheduled a meeting of the underwriting committee in two days.
What is the problem? With fees and points and so on, their money cost me 16%, and it was a total pain to refinance to a 5% conventional mortgage.
If you are going to do a deal which involves buying a house for $50k less than market price, then paying Eastside $10k to expedite the closing is totally worth it.
Eastside funding are good people, and they provide excellent service. I would use them again, if a similar situation came up.
Investor / Lender · Seattle, WA · Member since 2014 · 1k+ posts · 730 votes
6y
@Dave Chapman
Congrats on the successful deal!
However, the scenario you described could be achieved with most of the local HMLs here; I don't think you needed to pay 16% for that. Probably could have achieved it at half the cost. I last borrowed from them in 2015/2016. ESF has also changed a little bit since last year when the market slowed down in Seattle.
Real Estate Agent · Bellingham, WA · Member since 2017 · 427 posts · 182 votes
6y
If you haven’t already, look at Civic Capital. 1 year loan. 10-15% down. 90% of rehab. 3-4 points. 9-11% interest I believe. But, here’s the thing, 1 head loans with no penalty for selling sooner. And extensions are 1 point for 6 mo the. They also have longer programs and interest only rental unit programs.
Currently using them for a deal in Fairhaven. The 90% rehab takes some getting used to, but the rest is awesome.
Investor · Burlingame, CA · Member since 2014 · 42 posts · 21 votes
5y
Trent,
I know this is a very old post but I was wondering if you ended up using Eastside Funding? I used them twice in 2015 and they were excellent. Very easy to work with and not strict at all. They extended one loan a couple times and even gave me some more money. I've been away from real estate a couple years and am getting back into it and wondered if you use them or can recommend another hard money lender in Washington?
Any hard money loan under 10% now is a great deal if you can get it. I borrow at sub 8% and lend at 12% so I know. But we never do more than 90% of cost and 85% ARV. Doing this for over 45 years. Over $18 bb total closed, average loan size $4 mm. But we do much smaller. We buy a lot of non performing loans.
I suggest to newcomers that they invest with an experienced flipper, fix and flipper, do at least 3 deals and understand the terminology and the way business is done before you venture out.
we only accept accredited investors that are highly sophisticated