All Forum Posts by: Joseph Coleman

@Account Closed That is a really great question because in answering it you will start to really understand the machine behind what determines interest rates and in turn what drives the entire real estate market at the macro level.

For example, there was an updated policy from Japan's central bank that sent up the 10 year treasury yield recently and that in turn raised mortgage rates (source).Who would have thought? 

This is the source that I use to track rates, they often give an explanation for what driving rates up or down on a weekly basis. 

Mortgage rates are ultimately heavily influenced by the Federal Reserve but the mortgage rate itself is ultimately determined by the secondary market buying and selling mortgages.

Mortgages (or mortgage backed securities) are just like treasuries except that they are often paid off before they are due (due to refi's).

So when the demand for fixed rate securities goes up relative to supply, the price for these securities goes up and the rate goes down (this is an inverse relationship). And vice versa. So they follow each other very closely because mortgages and treasury securities are very similar from an investors standpoint. 

The result is an uncanny correlation between the 10 yr treasury and mortgage rates. 

Gurjot Grewal I personally like to lock in my rate with one lender and float my rate with another lender. I am transparent with lenders through out the entire process. It's not in the lenders best interest but it allows you to have a backup incase something changes in the secondary market and your financing falls through with one lender. Given that you are a Canadian investor though, the rules or terms may be different for you. I would ask them at what point you are required to use them as your lender and what fees may be charged in the process. 

@Amos Raymond  The rates that Lien referenced are roughly in line with what I am seeing, I would caveat this with a recommendation that you, 

1. Get rates and terms from multiple lenders and give them a specific deal when possible. Highlight your previous experience to see if that will get you a discount now or in the future. 

2. Do not only compare rates but compare the fees as well and what benefits the lender is providing you. Many lenders need to pass on legal fees or charge points (a flat fee charged as a % of the loan amount) to originate the loan, which are not included in the rate. 

3. Ensure that you are aware of how and when the rate and terms of your loan could change depending on movements in the secondary markets. 

You can always check the rates quoted from the large lenders like, LendingOne, Civic and RCN on their website.

As for finding lenders,
Besides The BiggerPockets HML Directory or the BiggerPockets Lender Match (in beta), I would recommend talking with your title company to find hyper local hard money lenders that lend their own private capital as well. They can often bring more than money to the table, they can bring their expertise and network to ensure your deal goes well. The more expensive the money, the more value I would expect from a lender. 

For anyone who is just coming across this thread, BiggerPockets has a great book on the subject - "Lend To Live." 

Hi Kevin, @Kevin Galdamez

I manage our relationships with lenders and (if you have a deal under contract) I would be glad to run a search for you using our lender match program (in beta).

There are advantages in using a truly local private money lender. For example, like drive by appraisals, faster funding and getting advice from a lender that is much more experienced and knowledgeable than yourself. They may be more expensive (at times) but it is not always just about the money. Having someone who is local with skin in the game should increase your odds of success.

If you really want to know what the pros are doing in your market, become friends with a local title company and ask them for referrals to the private money and hard money lenders that are doing lots of deals. It may surprise you. 

Greg Steinbrenner   @Greg Steinbrenner

How is your search going?

I manage our relationships with lenders here at BiggerPockets and glad to help point you in the right direction. Most investors on BiggerPockets find lenders on our,

List of mortgage lenders,
Hard Money Lending Directory,
BiggerPockets Lender Match (in BETA)

@Harrison George the expert in "The All In One" Loan 

@Sam Dorgalli I know a few hard money / private money lenders on BiggerPockets who will fund 100% of the purchase of a property at 100% loan to cost and 75% loan to value in their home market (LTV is probably closer to 65% now in fall of '23).

This is just on the debt side. There are equity investors who will take on more risk in exchange for a higher % of the deal. Perhaps a local contractor that needs work (I imagine that is hard, next to impossible, to find right now).

If you find a great deal the money will come.

Does anyone know of any insurance agents that specialize in STRs that you can tag into this conversation? 

I know my area requires $500K of liability insurance to cover issues like this but based on the conversation it sounds like this may not always apply as you would expect. This makes me wonder if there are any ways to mitigate this risk by (for example) thoroughly documenting the condition of your property and your efforts to maintain health and safety features?

@Richard Griswold There are several. Check out Hurst Lending. 

Also, I would highly recommend searching the NMLS to research the status any of the lenders above and looking at their BiggerPockets reviews before working with them.