All Forum Posts by: Ivory Hayes

Welcome to BP Mark, go after your goals intelligently and with confidence! Go get'em! Happy Investing...

@Boyd McClean, I especially like your point of how to address the situation of pm lending. Often times individuals who are looking for and need money approach the situation from that perspective, as in we need money. But approaching the situation from a different angle allows your desire for the money to take a backseat and affords the lender to connect with you as a person and your needs. Thanks again

@Chi Kanu that's great advice, thank you. I've been down the family and friends route and they all have that scared mentality, which is common, where they'd rather see me be successful first at what I'm presenting to them before they decide to throw any money in. Which is why I'm building my case with the 4 rentals I've obtained in 2 years and plan to add at least 2-5 more every year from this point on...

Hard money might be easier to find, as you mentioned but I hear that private money usually has lower costs because there's more flexibility in regards to the terms. Makes sense to me but in your personal experience have you found this to be true?

@Darren Eady I'm looking for a PM lender that offers longer terms than traditional hard money financing. I have heard that 20-30 year terms private money is possible. Simply put, pm lenders sit their investment in an investors deal and earn 5-7% on a long term basis instead of earn close to nothing in a CD or Bond. This is what I'm seeking, seeing as how I'm a buy and hold long term investor. I have a few sfh's and condos but I'm getting ready to invest in multi-families and need a solid source of funds for long term investment purposes.

@Chris Dawson I appreciate your insight. How do local lenders advertise their services besides word of mouth and possibly online. I'd be trying to tap into a local market conversation without at all being local. Would realtors or property managers have contacts to local pm people? I guess I'll never know unless I start asking right...lol Thanks!

I'm not well versed on the topic of co-ops and how that plays in to your refinancing options but most traditional financial institutions usually lend on anywhere from 60-75% (varies by institution, community banks vs big banks) of the property's value minus the owed amount. Certain criteria financial institutions consider include but not limited to are, credit score, debt to income ratio and income.

Hopefully this helped a bit... Happy Investing!

Is it best to seek out private money lenders in the area which the property is located? I've been told that it's best to try and connect with private lenders in the area of the potential property for tangible reasons. Will lenders usually only lend on properties that they can touch or take a drive by to see or have I been lead astray in regards to this subject? Can someone tell me what's the normal practice of a private lender and what's the criteria that they are looking for when considering lending funds?

With access to 120k I don't know how you would ever feel stuck Mark. Although it's nice to have both, money can buy you an investment quicker than credit can. It's all about assessing your goals, have you done that? Once you do you can determine what the next move is and how you plan to get there.

I enjoy investing in AZ myself. Equity is steadily increasing and opportunity is abundant. PM me, I'd love to hear about which area you invested in.

The reason is because big banks will only lend to companies commercially. It would have to be a commercial loan since its your llc looking to borrow money. If you personally are looking to borrow then they could offer you conventional loan products. This has been what I have found to be normal practice in my personal experience.

I hear local community banks are able to be a bit more flexible when it comes lending practices but I can not guarantee it would much different.

Happy Investing...

Hey Douglas, nice to meet you. As another investor from California I'd be honored to chat and try to figure this thing out, anytime.

Another thing to consider, and someone correct me if I'm wrong, but the ability to refinance the acquired home in to a conventional loan with a financial institution will also depend on your debt to income ratio. Keep this in mind with already having 4 other loans. If there's enough equity in your next purchase you could possibly pull out enough to consolidate some of that other debt but this is a point that you might want to ask financial institutions and get answers to prior to taking on anymore debt because this will allow you to either be able to or not be able to refinance and pay your private money lender off. This piece of information would drive your direction on the terms of your private money deal.

Happy Investing..!