All Forum Posts by: Darren Eady

You can either become a hard money lender yourself, which requires starting a company, website creation, legal assistance, program creation all to find yourself marketing a product that you have possibly little experience in, and potentially losing money for awhile . . . OR . . . you can work with a hard money lender that has been through all of that, knows what they are doing, and could use your funds to reimburse their loan money disbursed, and see if they will part with their performing mortgage notes. It allows you to BE THE BANK without actually buying the bank! Thanks!

I sent you a private message with a contact at Talmer Bank.

When you say "pull out" cash, I imagine you already own these properties free and clear and the partner is going to create a note for you to be able to pull your cash out?  Just helping others clarify first what it is you are hoping to accomplish by understanding your history with these properties.

@Jay Hinrichs

I agree with you completely!  Thanks for your comments 

@Jay Hinrichs

I've had two attorney's go through each state for lending requirements for business to business loans (company to LLC and IRA) on non-owner occupied properties and they found 13 states that have a "potential" requirement. Each state can interpret it's laws to mean what they want it to mean for a private lender, but even the thirteen states that have requirements are vague on their definition of when that requirement is applied. I'm staying away from those states regardless, but the only thing that is clear is that the law is unclear.

States like Nevada, had my last company come in for a sit-down and explained how they required licensing AND a brick and mortar presence in their state, but so far . . . they were the most strict and their were no penalties for the loans completed to date in their state.

With so many new lenders jumping in to the industry lately, I would imagine the rules will become more strict soon.  

Is this a home you are going to live in or rent out? Dodd-Frank does not currently oversee the private money arena on business to business loans (loan to your IRA or LLC) or private money for investment properties (non-owner occupied).

@Nathan Click

I'm reluctant because there are several companies that have a hard fast rule about properties that do not appraise for $50k, and I deal with properties that will appraise from $40k to $60k.  If the company doesn't have a minimum loan amount, their rate or fees tend to be too high.  Do you feel like you have something in the middle?  Are you working for the lender or just a broker with several lenders?  After putting together loan programs for lenders, I feel like this is a missing niche in our industry and I want to be VERY sure the fund you are thinking of is set up to handle exactly what I'm looking for.  Maybe connect with me and we'll speak specifics.

@Gerald Demers

I have 50 properties that I would love to refinance with a portfolio lender, as you mentioned.  I have had a very difficult time finding a lender that will actually produce a low enough interest rate and will look at the package of performing properties as a whole and allowing for individual valuations around $50k per home.  

Would you please let me know of the financing group you find that will do this for your portfolio?

@Account Closed

Talmer Bank - local bank in your area.  I visited with them over the phone, but saw their locations in Cleveland while I was visiting.  Connect with me if you would like the contact I have spoken with.

Hey @Dean Dubach, I've appreciated your recent emails.  I had an accountant try to self-service notes for awhile and I think he added some grey hairs too quickly and I was forced to find the Note Servicing Center in California.  Their company has grown with my needs over the last seven years of note creation and sales and I love working with them.  Could I introduce you to the owner and see if he can make life a little easier for you with them doing the compliance, statements and 1099s?