Quote from @Bernard Wallace:
Quote from @Jay Hinrichs:
Quote from @Austin Duncan:
If you can't find any solution on this platform, you should definitely check out Pace Morby's groups. He's the Creative Finance guy and those individuals in those fb groups know exactly what you're trying to accomplish.
Hope this helps.
I agree with this. a lot of beginners and small time players / lenders .. so this could work plus they are not the sharpest tools in the shed compared to experienced lenders who would find this quite unattractive as a loan.
I’ll be real with you comments like “small time players” and “not the sharpest tools” aren’t necessary, especially when people are out here actually doing the work.
Let me show you what “small time” looks like:
Property purchased for $52,000
I personally invested $32,000 in rehab
- Project is nearly finished
- Set to sell for $165,000
- That leaves a spread of $81,000
- Even with a $20K–$25K loan, the profit still clears well after loan costs — and that’s with me using real numbers, not hypotheticals
So to say this deal isn’t attractive or that it takes someone “sharp” to see value in it is unnecessary .In reality, a smaller loan here makes more sense than overleveraging on a bigger one. Not every deal needs to be oversized to be profitable it just needs to be smart.
I’m not here to prove anything, just to get things done. If this deal doesn’t work for you, that’s fine but don’t downplay real efforts when the math speaks for itself.
So if that’s what you consider “small time” or “not the sharpest tool,” maybe the real problem isn’t the player it’s the lens you’re looking through.
Mr. Wallace.. I apologize that you took my response like it was meant to demean you personally. I was not referring to you at all or your deal.
What I was referring to as "small time" and not the "sharpest tools" Was the Pace Morby members who are engaged in EM lending ( gator lending) and small balance loans like what you need. Further Agreeing with @Austin Duncan suggestion to reach out to the Morby Group.
For your deal with most HML you will have challenges in loan size and fico.. So everyone is going to encourage you to refi the whole loan charge you a bunch in fees and interest when in fact your only 13k or so from solving your problem.. Better to pay interest on 13k then to run up 10k or more in transaction costs refinancing this project. And I assume your exit is a sale.
So there ya go.. Hope that clears the air here.. and I wish you the best with it.. My mom was born in Milwaukee and we go there frequently for the state fair . My cousins live out at Peewaukee so I am fond of the area.. Spent my summers there with my grandparents in the 60s.
As for doing the work I fund about 200 deals a year just like this in 7 markets.. So I know the work involved and appreciate how tough it is etc. In addition I own a 90 home new build project in Oregon and I know how hard that work is as well borrowing millions and delivering 700 to 1mil dollar homes to picky homeowners LOL.. It all goes good we make a pretty nice return.. it goes bad I go broke.
