All Forum Posts by: Gary Headrick

Most small private lenders don't keep enough money in reserve to take out a first. If I have that much money in the bank, I don't feel like I'm doing my job.

Good advice from Mitch. Also you can tell the pros by the paperwork such as reviewing the prom note BEFORE you sign and using reputable title companies

If you get to the point where you need hard money, I know of a couple places that do what they say as I've worked with them for a few years. Your call.

Just like the Boy Scouts - be prepared. Think you are looking for an equity loan vs. LOC but you will find out shortly what they would offer. Keep the additional information in your briefcase. You will know if/when it is appropriate.

The answer is correct, however, many private loans have a prepayment penalty. It would be spelled out in the Prom note.

Private Mortgage Inc in Sarasota or Expanse Financial in Bradenton. I would give you the phone numbers but the website would have a hissy fit so guess you will have to dig them out for yourself.

Not fond of lawyers but now it the time for one.

Probably won't get a lot of interest (pun intended) at 8%. My target is 10% and suspect that is pretty well average.

Reidel provided a good summary. I deal with a couple brokers who vet most of my deals and require that they have MY lawyer review all the docs (He charges $150 which I require the borrower to pay). I check out the property on Zillow and Trulia for background and "ballpark" value. Check out the flood zones - I buy a lot in Fl. And make sure that the borrower carries insurance and you are on the "additionally insured" line. As mentioned the biggest downside is foreclosure and therefore rarely do anything beyond 65% LTV. I also get a personal guarantee with SS#, DOB and contact info. making it clear to the borrower that I will pursue a deficiency judgement.

ReidelKathie Riedel

Eric Johnson is a fellow who brokers loans to Hard Money and private mtgs.