All Forum Posts by: Jared Rine

@James McGovern...sorry about your son's experience, from the both the lending side, and the broker side.  I can only speak from my experience as a mortgage broker, but it sounds like your son found the wrong sources, and should probably stick with the said family office that he has in his pocket.  They sound like a good fit.  It also seems like there wasn't transparency with the other lenders and/or brokers he worked, or tried to work, with.  Your son shouldn't have experienced any of the things he did, even if he was to work with an institutional-backed lender.  Sounds like lack of transparency and inexperienced loan officers/processors/etc.  

As a broker myself, I would agree that there are many of us in the industry that really don't know what we're doing, especially when it comes to private/hard money.  I've been in this space a long time - about 15 years, with true private/hard money (a lot of the deals I do in CA are funded by either one or multiple individual investors).  I believe it's important to understand where the funds are coming from, so you don't misrepresent, and so the client understands. Some don't care (as long as the deal is getting done) and some do.  In my arena, I fund deals with different types of lenders on the private side - debt/hedge funds, private individual investor/groups, family offices, and then institutional (backed by other debt funds/life-co/banks/etc.).  

Thanks for the read and the share.  I hope it helps those who are able to read it. 

@Albert Retowsky...Possibly Interested to hear more on what you're looking for.  I'm not adept to the area, but I have family that lives not too far from where you build. 

@Brett Cook...85% does exist, with many of the lenders I have in pocket, but most of the time, the debt cover ratios don't work because the pricing is worse than say 80% or 75%. As Harold mentioned, 720+ is a bare minimum for any lender able to do this. In all the time I've done DSCR loans (since 2012 before they became a 'thing'), I've never seen a 85% LTV deal work on a 1-unit property. If you think you have something in hand, I'd be interested in seeing the quick details (below).

*Address 
*What is your credit score? (if you don't know, provide a range)
*Do you own a primary residence and/or any other rentals?
*Purchase price?
*Is the property rented?
*What are market rents?

@Jennifer Kim..I'd be interested to hear/see more details about what you've got going on.  If you want to send the pitch offsite, please do. My email is in my sig.  Or PM me here. I'm not into raising equity, but maybe you can do this on your own, even if it's slower?  Might be something to explore. 

Obviously this is just my $0.02, but I've been doing construction loans a long time.  I'm going to echo @Aryia Bala + @Mike H. I think in this market, what you're asking for is a unicorn/needle in the haystack/doesn't exist type of request. 

@Karolina Powell..I'm going to add my $0.02 to this. Full disclosure, I'm a mortgage broker out of CA who places this type of $$. There are lenders out there who will do some of what you're looking for, in some capacity, but not all of it. Example - 85% is achievable out there, but only on 1-unit SFR's, and most lenders will typically have loan amount minimums (it seems based on an average from the info provided, even if these were all 1-Unit they would not hit those minimums). I don't claim to know everyone in the space, but 2-4 units are typically maxed at 80%, many lenders at 75% LTV. 85% or higher would be way too risky in this market. However you structure it, and whoever is doing the loan, you should be able to get less than 8.5% interest rate assuming all markers are hit that you mentioned.

I might be able to help you, but I'd have to see more details, and likely would be maxed at 80%.  Pricing should be better than 8.5%. Part of the issue as well is the value/price per property is in a lower range, and thus loan amount is smaller, which I know works for these types of portfolios, but it's not necessarily what these lenders WANT to lend on.  Hope this helps. PM if you need. 

@Magnus Wikström..what leverage are you trying to obtain?  Full disclosure, I'm a mortgage broker, out of CA, and have years of experience placing private money construction loans for different clients. Mainly luxury spec builds here in CA.  I would tend to agree with you about your points about private investors vs. "hard/private" money companies, but I'd be interested to understand what you're looking for from a leverage perspective.   You might be surprised by what's out there.  I'd also be interested to hear more details about the projects you're doing, if your open.  Feel free to send me a PM/message as well.  Thanks,

@Mitzi Cil...I don't know what their ad looks like, but their program is real. And it's 100% financing based on an ARV; they're not just going to give you 100% loan to cost $. You also have to hit liquidity requirements and stuff like that, and they don't just let anyone use their program - have to have experience, they dive in your income, and deals I've had quoted as a broker always include payments, as they typically want 3-6 months front funded in the deal, whether the loan amount allows for it, or client has to bring it in. Full disclosure - I'm a mortgage broker; I do not work for them. I will say also as long time mortgage broker - what you're looking for is not available in the market from ANY lender; sounds like you need a partner. Hope that helps.

@Patrick Elias...you've got some good answers so far, but figured I'd add my $0.02.  There are too many factors in commercial to provide you general terms as terms can vary a lot depending on deal factors.  There needs to be more information regarding property type, location, type of deal (value-add or stabilized), your financial strength, experience, etc. This, and how flexible you want to be will affect what lenders you approach and who will lend on your deal. General terms are pretty much a disservice.  As @Givo Aghasi mentioned, 75% (or up to 90% CLTV) is out there, and I'd agree. But that's so rough. As example, I tend to broker alternative, private and SBA. Assuming numbers + deal checks out, can do 30 yr fixed in low-mid 8's, at best on alternative side.

@Tim Nethers ...they are out there, but you have to know who to contact.  Full disclosure - I broker these types of loans.  But it's why people like me stay in business.  Knowing who to contact and what lenders can execute in the marketplace is so crucial and as an investor, that can eat up a lot of time and resources that would otherwise be better used elsewhere when trying to do it on your own.  The loan amount itself is going to be a main issue for most lenders at ~$150,000 value, let alone finding a niche product.  But it does exist.  I don't know if it would work for your situation, but feel free to PM.