All Forum Posts by: Ann Bellamy

Ditto what Will said, plus:

Small loans make the originator and the lender almost no money, but the closing costs, ie title search, legal, recording fees, etc, are the same

I'm going to be there. I started a separate thread without realizing this one was already going.

What about if we connected at a certain date, time and place, so if we don't find each other in the normal course of networking, we'll know we will find each other at that specific time.

I'm flying in Thursday afternoon, arriving at the hotel about 4:30-5PM ish, flight times permitting.

Welcome, Paul. Get as much free information as you can. My website (in my signature) has a lot of tips and information for new investors. Also, books are an excellent source of low-cost info, before you start paying for guru courses.

Check your local REIA's, there are several in our area and if you message me, I'll send you links to their websites. Moderator: If it's ok, I'll post links to the REIA's in the body of the post. You can join or simply pay the meeting for for that night.

I know investors working many different strategies in different parts of MA. There is definitely a need for wholesalers, I know lots of rehabbers looking to buy, but it depends on your skill set and what you can motivate yourself to do.

Well, technically, most hard money lenders are private (as opposed to institutional) lenders.

Don't worry so much about what to call them, as what their terms and conditions are.

If they are in the business of lending out money, (we'll call them hard money lenders) you are probably going to have trouble getting them to go for 65-80% of the ARV. 60-65% is more likely. If they are advertising, then they are not just private investors looking to do an occasional deal with a person like you, and have their own criteria. So ask if they allow 2nd position mortgages, and then keep looking until you find one. Then you will need to give your private guy a significant share of the profits because:
1. You'll have no skin in the game, and
2. He's in second position

You are part of the crew presenting Memphis Invest, aren't you?

First, you need to post the location of the property.

Second, if you are going for a 203k loan, those are owner occupied loans. I don't think they will go that small.

Third, Almost no one lends that small except local hard money lenders, and even that is tough to get for under 50K.

But a 15 year loan from a hard money lender is pretty much non-existent. 6-12 months is the norm in my area.

So your best bet is to find a local hard money lender in the area of the property, and then find out how long they will lend. Be prepared to either refinance or sell, and have your exit strategy in place before you call him/her.

Anyone going to the Equity Trust Networking conference in New Orleans this weekend? I thought it would be an opportunity to connect in person with some BP people, just to say hello and get to know each other.

It seems to me that they want to get rid of them, but only if they can get their price and don't have to take a big enough hit. So they aren't motivated enough. If they REALLY didn't want them, they would have let them go at the foreclosure auction in the first place.

I'm coming to this party a little late, but wanted to add my 2 cents.

I want to re-emphasize the advice to google people and companies you are about to do business with. I love BP, and it's pretty evident that there are some real players who frequent this site and give really good information. But as with any forum or group, BP can't vet it's members either. Without mentioning names, there are people right here on BP (unfortunately) whom I have googled and found surprising information. Court actions are frequently available online and so if you google the person with their name in quotes, you may be amazed. So I can't emphasize this approach enough.

Also, you'll find that local hard money lenders provide only commercial loans and do not provide written GFE's such as are required when lending to homeowners.

True hard money lenders also don't wait around for appraisers, they do their own estimate of value. So you may not be hit with an appraisal fee, but you may have a site visit fee. I personally don't charge either of these, but at the time of loan commitment, we require a deposit to cover title search, etc.

Big upfront fees to evaluate or find a loan should be a big red flag. there are are couple of large national companies who make a business from fees, and do only the loans required to stay in business. But once the loan is committed, payments toward title and attorney fees are common and appropriate.

I'm guess Bryan is referring to Registered Investment Advisors - correct me if I'm wrong, Bryan. Here is a link describing what they do
http://www.investopedia.com/articles/financialcareers/06/whatisaRIA.asp