All Forum Posts by: Dan Zitofsky

Ive lent hard money on a buy and hold but have been taken out after repairs or the borrower becomes eligible for conventional financing. You have to remember that a lender makes money by velocity of churning their money and usually wants to see 20% or better annually. if you keep this in mind when presenting you could see if the deal makes sense. For example lending at 14% and 4 points monthly without the velocity of compounded interest at a minimum is 22% annually. Hope this helps in your journey. Feel free to ask any questions you might have. All my best. 

Dan

I'd be happy to take a look at your deal. We lend up to 80% of the purchase and rehab. We want to see you put in 20% of your own funds and submit a rehab estimate and draw schedule from a licensed contractor if you aren't licensed yourself. Hope this helps. Best of luck. 

Dan

brian

My advice to you is to put together a business plan, outline of what you plan on doing. How much money your putting in the deal and who your contractors will be. When we review private money deals we definitely want to see this. Hope this helps. 

Dan 

Shan as a hard money lender myself we wouldn't lend unless you put some skin in the game. 20% on purchase and rehab as a minimum with an ample plan in place. My best advice is find someone with experience in your area and JV with them on this deal. Most banks won't speak with you and if they did would want proof of funds at a minimum. I'm sure you could find someone in your local Reia group to partner with. Best of luck always.

we originate loans. 

our terms run from 12-14% with 4 points for 6 months. We extend for up to 6 months for another 4 points if your doing what's needed. The insurance dec page would have us as the mortgage clause on it. 

my recommendation is to use 20% of your funds for purchase and rehab and use private money for the rest. Just work the costs of private money in your numbers and if it works your fine. You can do so much more leveraging your money this way. Hope this helps. Best of luck. 

congrats on getting involved. I can tell you from my perspective as a lender. I require out borrowers to put 20% down on the purchase and rehab and will lend up to 65% ARV. We require a nominal up front fee of $730 which covers appraisal and review. We ask borrowers to give us repair estimate and draw schedule from a licensed contractor. I also ask for pics and a video walk through so I understand the deal. Hope this helps answer some questions.

Gonz your on the right track for sure. I know tons of people want to own the properties free and clear but to get to your goal quick you might want to review the velocity of money and tax benefits of financing. I teach this myself to many students and events I speak at. Your mind will be blown but all depends on your goals. Wish you all the best. Im happy to answer any questions you may have.