All Forum Posts by: Karen Smith
Karen Smith has started 28 posts and replied 73 times.
Quote from @Julianna Barnes:
Hey everyone! I am looking for a private money lender that can fund on a 6 unit property in the Bay county area for around $400K with great monthly cash flow. I have already been preapproved through various DSCR/Commercial lenders however they are all requiring 25%-30% for the down payment. I have the capital available for that size of a down payment but I really don't want to tie up that much cash into one property. I am wondering if there are any lenders on here that are able to fund the entirety of the loan with at least a 10%-20% down payment and/or a private money lender that can help fund the 25%-30% down payment with one of the lenders I have already been preapproved with. I also have another investment property located in Enterprise, Alabama that has about $150K of equity currently in it. However, after running some numbers on a cash out refinance, the current rates would nearly obliterate the $800/m I'm gaining in cash flow on that property as it currently has a 2.25% interest rate. Does anyone have any creative financing advice that we could get this deal done without needing as much upfront cash? Seller is absolutely not willing to do seller financing of any kind as she is sick and needs the cash now. Thank you to everyone who responds!
Check us out. Send us a DM or email us at [email protected]
Quote from @Marcella Summers:
Seeking a private money loan of $350k for a residential assisted living facility in Contra Costa county, CA. Funds will be used for down payment on real estate and startup costs.
Five years forecast key information:
- Revenue: $2.88 million
- EBITDA / Sales: 32.51%
- ROI: x 76.38%
- Profitability: one year
-Break even point: three years
Shoot us a DM or email us at [email protected]
Post: Looking for DSCR lender to close in around 10 days w/o experience requirement
- Posts 75
- Votes 5
Quote from @Christan Cosgrove:
Looking for a lender to do a DSCR with a quick close; I previously owned property but not within the past three years.
House sold at $234K, already put 20% down, willing to put more down to qualify or get a better rate.
It's a turnkey two-unit, renovated in 2019, and comes mostly furnished.
We're planning on doing furnished medium-term rentals and anticipate rents around $1700/unit.
Was using a different lender but they required more recent experience, have a closing date of 09/20 we want to meet.
We can certainly help. Send us a DM or email us at [email protected]
Post: Looking for DSCR lender to close in around 10 days w/o experience requirement
- Posts 75
- Votes 5
Quote from @William Salterberg:
Let's talk! I might be able to help!
Sure, please send me a DM or email me here at [email protected]
Post: Seeking Lending Partners for Active Deals in VA and NC
- Posts 75
- Votes 5
Networking can open doors to amazing investment opportunities! Partner with Mansion Money Capital for your financing needs and grow your real estate portfolio. 🤝💼
#Networking #RealEstateInvestors
Post: Navigating Interest Rates: How Do You Make It Work?
- Posts 75
- Votes 5
Given the fluctuations in interest rates, how do you determine if a private money lending option is worth pursuing for your real estate deals?
Post: The Rise of Private Lending: What's Your Experience?
- Posts 75
- Votes 5
Quote from @Thomas McPherson:
Quote from @Karen Smith:
With more investors turning to private money lenders for faster funding, what benefits have you seen from using private financing versus traditional bank loans?
Speed, speed, speed. A reliable lender can fund a loan within days, this opens the door to countless more deals allowing you to get the best possible price. If it is a direct lender you are able to work to find more favorable terms because they usually determine their terms on a deal by deal basis. Like Jay said, there can be more flexibility in repayment options. Securing a good lender can greatly accelerate your real estate investing journey.
You’re absolutely right—speed is such a critical factor in securing deals, especially in a competitive market. The ability to get funding in just a few days can make a world of difference, allowing investors to act quickly and lock in the best opportunities.
I’m curious, in your experience, what strategies have you found most effective for building strong relationships with reliable direct lenders? Have flexible repayment terms been a game changer for your deals, and if so, how have you leveraged that flexibility to scale your investments?
Post: The Rise of Private Lending: What's Your Experience?
- Posts 75
- Votes 5
Quote from @Chris Seveney:
@Karen Smith
As jay mentioned private lending has been around forever and it’s really not on the rise - I think it’s always been a large player in the real estate investment space for short term loans.
Prices have increased (higher terms/rates) as the fed rate has gone up so you have seen people who could get 8 or 9% now in double digits. I think the 10-14% rate is where it will be for the next five or so years personally so plenty of opportunity
Thanks for sharing your insights! You make a great point about private lending having a long-standing presence in the real estate investment space, especially for short-term loans. I agree that rates have naturally adjusted with the rise in the Fed rate, and it seems like the 10-14% range may become the new normal for a while.
I’m curious—what’s your outlook on how this rate range will impact new investors entering the market? Do you think it will affect the types of deals they pursue, or will the demand for flexible financing options like private lending continue to grow regardless?
Looking forward to hearing your thoughts!
Post: The Rise of Private Lending: What's Your Experience?
- Posts 75
- Votes 5
Quote from @Jay Hinrichs:
Quote from @Karen Smith:
Quote from @Jay Hinrichs:
well have been a PML HML since the late 80s.
benefits are:
1. Speed generally
2. little more flexibility in ARV LTV
3. availability of capital.. the banks after the GFC pretty much stopped fix and flip lending Granted your top tier clients can still get these loans. However those with no to very limited experience will never get a fix and flip loan from a bank.
4. Repayment options can be more flexible like in my case I do everything on accrual this really helps flippers when they dont have to make monthly payments.
Downside:
1. Pricing higher than a bank ( if you can actually get a bank to lend you money in the first place)
2. And this is a biggee wading through the fake lenders or the Joker brokers that tell you what you want to hear but cant get the deals funded and you lose the deal and a lot of money.
3. with actual PML private people usually have very limited funds so cant scale with them.. they can have a life event and just stop doing loans all together.. Much more emotion into the deals.
Hi,
Thank you for sharing your experience and insights from being in the private money lending (PML) and hard money lending (HML) space for decades. It's clear that the evolving market, especially post-GFC have shaped your perspective, and you've outlined some valuable points about the flexibility and challenges of private lending.
The flexibility in ARV and LTV is such a huge advantage, especially for investors who might not have traditional financing options. I also completely understand the frustration of navigating through "Joker brokers" and fake lenders who promise more than they can deliver—one of the biggest challenges in the industry today.
Regarding your approach to accrual-based repayment options, that’s a huge help for flippers managing tight cash flow, and it's great that you offer that flexibility. I’d love to connect and see how we could collaborate or share knowledge further.
Would you be open to discussing how we might work together or how we can support each other in the private lending space? Feel free to send me your preferred contact details or schedule a time that works for you.
Looking forward to connect!
U can send me a PM and we can go from there.
Hi,
Thank you for the response! I’ve just sent you a connection request and will follow up with a PM shortly. Looking forward to chatting and seeing how we can collaborate!