Private Lending

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Julians Jasevics
  • Rental Property Investor
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Private Lending options

Julians Jasevics
  • Rental Property Investor
Posted Nov 18 2022, 04:29

Hello BP Community,

Short summary: I own 3 single family apartments, free and clear (no mortgage). Have monthly 3 rental income.

For last 3 years were trying to get basic residential mortgage, but without success as do now work in particular country. All 3 Investment properties are long distance, in Europe. There are no commercial mortgage available, at least I can not find, either lenders and mortgage brokers I have been spoken to.

I have access to private lending instead, borrowing time is 1 year, maybe can expand to 3. I have read ton on books, listed BP and gather all necessary info, so ready to take action and scale up. As buying another single family with cash seems not fun for me, prefer to have small multifamily to expand. 

My questions (scream for help) is:

Usually private lenders get paid fully back after project is finished - life fix&flip, BRRRR, refinance or simple sell of property. Due to local regulations I need to keep property for at least 5 years to be exempted from capital gain tax in case I decide to sell. Actually I am not planning to sell, but keep new property for maybe 10+ years until its double in value.

One option might be to refinance or ballon after x years, but I can't as bank will not issue mortgage to me. As I can not pay back my lender after 1 year lets say 500K that he will happily lend to me (can not save that much during 1 year :)

Please share how people overcome this without banks involvement. 

Thank you in advance! 

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