All Forum Posts by: Guifre Mora

@Michael Noto great answer.

You'll be looking at 75% LTV on a cash out refi minus costs.

@Mark Weinberg the HML will ask what's your exit strategy as this loans are not long term. 1-sell 2-long term refinance. The new bank will finance the entire loan amount owed and if you gained equity on the deal you could cash out the equity. Given there is enough to pull out.

@Marcony Simoes are you looking for bridge, Hard Money or long term financing? I work with a lender starting 50k low fico ok.

@Tommy Nguyen there is plenty of equity on the land. You need a specific land lender to cash out or a construction lender.

Some of the challenges will be the client experience as a developer, that the permits will be issued, she has enough reserves for the length of the project.

@Sukhpreet Singh biggest risk is running out of money if you don’t complete the project on time and payment. Hard Money is a good strategy but you need to have your funds for contingency and delays on your timeline.

@Matthew Nicklin they are shopping it around to fund it.

@Kevin Boyd Insurance Loans will be little tedious to underwrite you have good opportunities with your deal. I’ll be happy to take look at it.

@Jonathan Pe meetup.com has a few n SD North county might have one Temecula has another

Nothing, in my opinion. They are largely the same, equally give short-term loans to real estate investors at higher interest rates than banks and other institutional lenders.

There are several opinions concerning the difference between a “private lender” and a “hard money lender”. In my opinion, they are the same – a non-institutional money lender offering short-term mortgage loans to real estate investors. My take on this comes from the point of view of a lender in the private lending industry. Most individuals who would disagree with my opinion are real estate investors (borrowers). This is what I hear from many real estate investors:

“A private lender is an individual investor who lends his/her own money and does not charge any points/origination fees. A hard money lender is a private lending company that charges points and may get their funds from investors.”

Nevertheless, the lending companies which many real estate investors refer to as “hard money lenders” will frequently refer to themselves as a “private lender” or a “private money lender.”

Several private lending companies I deal with do not like to be associated with the term “hard money” because they feel it has a bad connotation and makes them seem unethical or having extremely high pricing.

But here are some of the benefits of doing business with a private lending company instead of an individual: More Qualified, More Consistent, never runs out of money, Reputation, Legal Compliance, Easy to Find, Better Pricing.

There are some benefits to borrowing from an individual investor: May offer higher leverage, may consider a joint venture or equity position, several don’t charge points (origination fees).