All Forum Posts by: Axel Ragnarsson

Hi everyone,

I'm looking to get into hard money lending in multiple capacities (lending my own funds and lending other individual's/investor's money). I work with a couple of high net worth individuals who want to get into hard money lending but don't want to vet the deals, find investors to work with, etc. I would be lending their money and paying myself a loan origination fee and perhaps a spread on the interest the real estate investor is paying and what the lender is receiving on the back end. 

A couple questions.. what are the regulations associated with doing this? Are there SEC regulations I need to adhere to when lending my own money? I'm sure there are when lending investors money/brokering loans, can someone point me to where I can find what licenses I need and what the regulations are? For reference, I am in New Hampshire.

Thank you in advance.

Hey Nicholas,

Congratulations on finding a property - Exeter is a great place to buy. I would personally opt for the fixed rate.. interest rates will continue to rise and who knows when they will return to the low rates that borrowers are being offered now. If the lender will remove MI from the loan at 78% LTV and you are putting 15% down, then you should reach that threshold rather quickly if you are buying the property for any amount that is under market. One of my personal goals is to secure as much debt as I can while interest rates are low as well, which may further bias me to the fixed rate product

Well, there are multiple variables that dictate whether a basement can be considered another “unit”.. the most prevalent being if it has a legal bedroom, bathroom, kitchen, ceiling height, and a number of other things. What constitutes “legal” also varies state to state and city to city, so it’s hard to say. For example, in NH, a bedroom needs to have a method of egress (window) which must meet a certain square footage requirement. In any event, you should check your local regulations to see what is necessary to convert an additional room into a bedroom, or a basement into a unit.

Landlording certainly isn't for everyone, but I think you are severely overestimating your time commitment estimations. I own 11 units and spend probably 15 hours a month managing them when I'm not leasing any units. I'm not sure if it's been managed by any previous posters, but you definitely can't discount the tax advantages of real estate investing either compared to the equity markets. I have yet to pay tax on my real estate investment income

@Tucker McCarthy Thank you Tucker, I'll give him a call. The property in question is located in the Manchester area, so your response is right on point. I'm looking into the process of permitting a basement unit or turning it into additional space + another bedroom for the unit it is attached to. I haven't gotten clear answers from the city regarding the process of doing so, which is why I'm looking for some assistance. 

Hi NH,

Can anyone recommend a real estate attorney who has a good grasp on building code, regulations, variances, etc? Thank you in advance.

Ronny Tiburcio In most cases, a bank will place an "expiration date" on a pre-approval after they issue it to a potential borrower. For example, if you get pre-approved on September 1st, the bank will say that specific pre-approval letter is only good until October 15th. Of course, you can always go back and get another letter, but it would make sense get your pre-approval/pre-qualification right when you want to start looking for a property/making offers. Most banks and credit unions I work with can turn around a pre-approval in just a couple days, so it's a quick process

Ronny Tiburcio If you're going to be using conventional financing and looking for deals on the MLS, you will need to have your financing figured out before you start making offers. Almost no listing agent is going to advise her seller to take an offer seriously if it is not accompanied with a pre-approval or pre-qual letter. As for what the lender is looking for, they are going to measure your DTI (debt to income ratio), run your credit, and likely ask for two years tax returns. They'll use this information to establish a number that you are "pre-approved" for. You mentioned that you will start looking to buy in approximately 8 months.. if I were you, I'd take that time to pay off any debt I had (car, credit card, reduce student loan debt if you can). His will help you make a stronger case to a bank when you walk in and ask for a pre-approval.

Hey @Nick Gray, I'm 22 years old and am investing throughout New Hampshire as we speak. I'm closing on units 7, 8, and 9 this Friday in Manchester, but I went to college at UNH and am very familiar with the seacoast area. I'm also a licensed agent, so certainly let me know if I can help you find or analyze any properties. Exeter is an awesome town, you're looking in the right place!

@Jonathan Ramos I own a couple of multis in Manchester and agree that there are a few areas you don't want to touch. However, there are a few areas that are not bad and that you should consider. Any of the "tree" streets that are within walking distance to Elm street are typically rough neighborhoods. The father north and south you get from Elm, the nicer it is. Feel free to connect and run any of the places you are looking at by me, I'm familiar with the area and can give you a second opinion.