All Forum Posts by: Christopher Davis

I'll chime in for Knoxville. I am the owner/operator of a private lending/hard money lending company based in Knoxville in conjunction with our local family office. I am a huge believer in East Tennessee, specifically Knoxville in the long term. The demographics of people moving to the south in general are very strong. Knoxville is very much under appreciated compared to most of the country. 

I'm more than willing to help you vet anything in the area just reach out

Just to chime in. I own and operate a private lending company on behalf of our family office and we almost always want 15-20% down for purchase. We have done 100% of purchase on super low LTV deals or with a very strong borrower.... but it's rare.

There are ways to get to 100% of purchase but it involves things like cross collateral, pledging securities, etc. 

Investment Info:

Single-family residence hard money loan investment in Carlyle.

Purchase price: $146,000
Cash invested: $146,000

Borrower purchased the property for 146k. It needed minimal repairs. The ARV was 325k. We loaned 100% of purchase. Two months later borrower had it appraised at 350k and refinanced with a local bank.

What made you interested in investing in this type of deal?

Really low LTV

How did you find this deal and how did you negotiate it?

Local Referal

How did you finance this deal?

We financed 100% of the purchase

How did you add value to the deal?

I was the hard money lender

What was the outcome?

borrower used us to close and then refinanced it and paid us back

Quote from @Trent Rogers:

Good Morning BP! I've never used private money to purchase a property however I may have inadvertently found a pm lender. 

With institutional rates on the rise over the past year I'm curious what rates/terms most private lenders as asking for these days?

While I understand that we can set the terms however we'd like, my potential lender is a long time client and friend so I want to make sure what we agree to is fair for all involved. Thank you!

 I am a pirate money lender in Knoxville. We are 10-13% and 2-3 points. Generally the more experience you have, the more reserves, and the more deals we have done with you gets you on the lower end of that spectrum. 

Investment Info:

Single-family residence private money loan investment.

Purchase price: $70,000
Cash invested: $158,025
Sale price: $252,000

We loaned 100% of purchase (70k) and up to 100k in construction. Borrower only used 88,025. Solid borrower and I have several other loans outstanding with him.

What made you interested in investing in this type of deal?

The property was so-so. The borrower and I differed on the ARV but he had plenty of cash reserves so I loaned more aggressively.

How did you find this deal and how did you negotiate it?

Referral from another borrower

How did you finance this deal?

All of our money comes from our Family Office based in Knoxville

How did you add value to the deal?

We funded the purchase and construction.

What was the outcome?

Borrower sold and made a great profit

Lessons learned? Challenges?

I was spot on with my ARV. Borrower said 285. I thought 250k becau

se I expected further market deterioration.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Derek Maples was the agent and he is really good in Knoxville.

Has anyone used Superior Loan Servicing? 

Hey @Rachel Pivonka did you ever get the roof replaced? We are looking for a good roofer!

Read it! It will only help! Same thing with the rehab estimating one!

Sherif Botros I would check out all of the above recommendations for sure. I bought my first property in Knoxville as an out of state investor from California and I've been really satisfied with the agent I worked with. Since then I've joined up with an agent and another partner and we do flips, BRRR's, and general buy and holds. I've been able to find some good deals off market lately and might be able to help you out. Feel free to PM me and discuss the market and what not I'll see if I can help you out.

My team and I are under contract for our first flip. We have several good connections in the Knoxville area for subcontractors but feel we might use a GC for the first flip if they can be competitive. Our criteria is as follows: 1) Willing to walk and quote property 2) Ability to offer "investor" prices 3) Can turn a property in under 8 weeks or less Any feedback is greatly appreciated! Chris