All Forum Posts by: Darren Eady

A bank lender will call this a residential property and a private money or hard money lender will call this commercial.  Definitely talk to you lender that will be helping you with the loan and they will explain how they classify the transaction.  

Have a great holiday weekend!

Everyone loves a discount.  This, like all real estate, seems to come down to risk vs return.  If you want a note that is going to perform and you feel your position is nearly guaranteed, then you'll pay par, or even a premium, to buy that note, just like banks do.  If you are buying a non-performing note, then you are going to weigh your costs and risks of foreclosure, costs of foreclosure, etc, and come up with a comfortable discount.  And of course there are also several stages in between these two options where you might get a small discount with some risk.  

You know all this already.  I probably shouldn't have jumped into this conversation to talk about my notes.  Good look to you in finding a performing note at a discount.  I do mean that.  Thanks!

HMLs look at commercial loans as non-owner occupied, even if the home is a single family residence.  If you live in one side of the duplex, it is a residence, if it's totally an investment, it's commercial.

Rather than thinking about going negative, think about what income the equity will create for you in your next deal.  Add these amounts up, rather than just looking at your current deal, and I bet you are not negative at all!

Bad, bad, bad, bad idea.  Would you like to hear some horror stories?  ALWAYS get a lender's policy of insurance.  There are bound to be issues with the property or the seller.

To answer your question, yes, you can create a mortgage on a property without title insurance . . . my question to you is "why would you?"  It would be like getting married without dating first.  You have NO idea what you're getting into!

Contact me through BP if I can be more helpful!

What are you asking?  How many private lenders can be in existence, how many loans as a lender, how many loans you can carry with private lenders?

Lot's of responses here already.  Let's talk about some options.  Contact me through www.secureprivatefunding.com

I'm not sure I understand your question.  If you have a loan against a property with the lienholder being a hard money lender, it is typically easier for you to refinance with a bank because you are replacing the loan rather than pulling out cash.

There are no seasoning requirements to replace a hard money loan with a conventional loan, but the same bank requirements exist (for most banks) for cash-out loans.  

There is no difference with the cash-out requirements with the bank if it is your first, second or fifth loan, IF the bank allows you to have more than four mortgages.  

Best thing to do is talk to loan officers at the couple of locations you are thinking of, tell them your scenario, and let them tell you their rules.  They will try to help you get the deal done, so don't worry about giving them the wrong info. or not knowing your stuff going in.

It's me. Been lending for years and over $230m.  I'll connect with you directly through BP.