All Forum Posts by: Joel Thompson

@Fred Shatzoff is in your area. I know he'd be the first person I'd reach out to.

@Chris Smith I'll echo what @Daniel Molina said. You may be able to find an asset based lender that will help you with a long term loan.

If I was in your shoes though, I'd probably be look to include the owner in financing.

Hey @Karan Malhotra, welcome!

That's gorgeous! Well done

@Karan Malhotra I think @Jay Hinrichs and I are on different pages of the same book.

I was probably getting too far in to the weeds to stick with the "general requirements" theme @Timothy Albright set up.

I was simply putting the info out there that a hard money lender is going to require some "skin in the game". Whether that comes in the form of a down payment, or using the equity in another property owned outright. I didn't want to give the impression that having a down payment is ALWAYS required, so I offered one scenario that it may not be required.

@Jay Hinrichs always appreciate your insight!

@Gabrielle Simmons I work as a lender and am an investor as well.

I'll be the first to tell you that there are situations where private money makes a ton of sense, and opens up opportunities that conventional lending could not. On the flip side its definitely more expensive, that's usually the case when there's a higher perception of risk from the lender's perspective.

You're always going to make your money when you buy, so if you get a project under contract for the right price, you're going to make money. Just make sure you know the numbers inside and out.

@Timothy Albright I am a lender, and think I can help out here. What kind of general requirements are you thinking of?

Typically we're not going to lend over 70-75% LTV, most lenders will only lend to an LLC, generally you'll be required to either have a down payment or property you own free and clear to cross-collateralize.

Happy to explain further if helpful.

@Joseph S Stevens II I'd suggest planning to use those funds from your family member as a down payment on a hard money loan as well. Most lenders won't give you 100% of the purchase price as a loan, it doesn't hurt to ask of course, but it would be a rarity if you found a lender who will do that.

@Jennylynn Caldona I'd be happy to walk through this deal with you from a hard money perspective if you'd like. We have long term hold options that are asset based for investors like you, there are a lot of us in the same shoes. Credit score isn't our main concern, even when holding the property, we're still looking at the asset.

I think I can help.

@Matthew Hogue I'd recommend starting with local lenders. You could attend a REIA, BP, or other event in your area, speak to some people who have used hard money before, and hear their feedback. Or, look up a list of lenders in your area, and reach out.

Anyone worth working with will be willing to chat whether or not you have a deal in the pipeline.

As far as vetting, you'll want to understand how they structure their rates, how their rehab/construction draw process works, and the basic outline of what types of deals they can fund on.