All Forum Posts by: Gary Headrick

As a straight investor, I stay away from lots although I still have one on the books (performing). Valuation tends to be difficult, demand is far less than houses and no rental income potential. However, you are a developer building houses so the situation is more of a forecast of building/selling.

Years ago when I lived in Fl. mobile homes had the same title as vehicles. Double wides had 2 titles. You may want to call the DMV.

Spent many years volunteering for SCORE and don't have a high opinion of SBA backed loans.

1. Few banks offer them as the paperwork is daunting - they advertise quick loans but they are usually pretty small dollar wise and even they usually take longer than advertised. You are working with the govt.

2. They aren't cheap. Just a couple years loans were running double the rate of mortgages.

Given the failure rate of startup businesses ( estimates range from 65 to 80%) banks shy away from new businesses and need a track record before doing business. It becomes a catch 22.

Friends, family, HELOCs, credit cards, angel investors and crowdfunding are options but usually in combination.

Listen to the guys above. Having lived (barely) through 4 divorces I can attest to one divorce is worth 2 stock market crashes and the road to hell is paved with good intentions. Get back in the shower and come up with another plan.

Jay nailed it

I have done  this (loaned against a mortgage) with a broker I've worked with for some time. I made sure an attorney did the assignment and it was recorded. Most banks wouldn't go the extra mile. Sorry, but haven't found banks to be particularly imaginative. 

Yes. Tax Liens and mechanics liens take priority.

Firstly, there is very little that is "typical". Almost everything with Private lenders is negotiable and the terms with HML vary all over the place. As a private lender, I can only tell you what I do. Primary on the list is LTV and I wouldn't buy anything that the buyer doesn't have money into (even with that, I have made an exception for one company where I know all the details of them getting a property way under market price). Private lenders are loaning based on the property not the person BUT, if you have good credit and a track record of success in RE that is taken into account. Terms can go from 6 mos. with a guaranteed minimum of 6 mos. interest to 5 years max. Most are interest only but some are 25 or 30 yrs. ammo. A fair number of the deals have been done through brokers who get $2500-3000 for their fees - I don't charge points on top of that. Interest rates run from 10% to 14%. Each deal has a personal guarantee - LLCs are nice but not without a personal guarantee. I will go after them for deficiency judgments.

Hope this helps a bit. I don't solicit business either and I am highly unlikely to be your next lender. I go looking for those who have been around for a while.

Read the forum on HML. There are a number of them but look for referrals and call the people they give you as references.

I'm seeing a similar situation but guess I'm old enough to slow down a bit. From my standpoint a bad deal wipes out a lot of good ones and not worth lowering my standards. If you really want to get involved in non performing notes, Watermark and Colonial Funding offer quite a few. Right now I'm getting all sorts of urgent emails from Capella Mortgage in LV if you want to contact them. Tried to see them on a visit and no response from them so leery. Your call.

First reaction is that the more information, the better. However, you would need to verify that the reviewer has used the lender. YELP ran into all sorts of problems because shills were sending in either very poor reviews or friends/family were padding the reviews. Being a private lender, I see a significant difference between HML and private but from a borrower standpoint probably not so much.