All Forum Posts by: Ashley Jones

@Ashley Jones-  let me know if you need a  good mortgage referral  that  in turn  can  assist with a  great  realtor   referal  for that area 

 Hi Ashley, 

If you have yet to explore financing options and expectations, I'd love the opportunity to connect and put together some high-level information for you to have some additional knowledge base ahead of taking this next step. 

Welcome Ashley! 

You may not know it but you swung from one extreme to the other... Credit Unions to Hard Money. How about banks?  If you've got good credit and income and you have money for a down payment, you should try some banks that offer "Portfolio Lending." meaning, (they keep some of their loans in-house and they have more flexibility on the loans they chose to make.)

You'll have to make several calls to find them and you'll still have to jump through the application hoops once you do but, if you get the rehab loan, it's well worth it. You'll save a lot over hard money & you'll establish yourself with a lender for your future projects. At the very least, you get an education in the lingo and how some parts of the lending can's and can'ts'.

If you'd like to know who I use, feel free to reach out to me.

Sure.  Contact Eric Feldman at Longhorn Investments.  He works with local first time investors.  Good luck!

@Ashley Jones I would say to keep looking before making a (and that's coming from a hard money loan officer). There may be some local options that might be a good fit or an HML might be the right fit for you. But, you shouldn't limit your options just yet, especially if you don't have a tight timeline to worry about.

Positive and negative to both....really depends on your liquidity and the specifics of the deal.

Credit Union
- Positives: low rates and fees...cheapest solution
- Negatives: requires money in the deal, sometimes will not fund rehab, slower close

Hard Money
- Positives: requires less money in the deal, faster, less difficult process
- Negatives: high interest rate, high fees

If it is your first deal I would suggest using a hard money lender just to remain as liquid as possible.  You may need that capital as things pop up throughout your first project.  Start with a smaller deal so you can get in and out quickly.  Most hard money lenders also have experience in the space and can help provide valuable insight into your project.  A little guidance is always good as you start.  Once you build a capital stack and gain experience you can move to cheaper capital that may require a little more skin in each deal.

To add onto this... these are two completely different loan options (most likely).

Credit Unions are likely to want to see income, assets, and tax returns. Few HMLs require this information. Credit unions MAY not want to lend on properties that aren't habitable - while HMLs make a living on doing precisely that.

Of course! Talk to several of them, see what they offer.