All Forum Posts by: Kate Lee

Can someone kindly recommend reputable private lenders in Northern California that are not too costly? I have flipping deals in the pipeline that need to be funded. Thanks and have a great day! Happy investing! :)

@David Begley  Thank you David!  Ok noted.  

@Jeff S.  Thank you for such detailed analysis!  I've met the borrower a few times in the local investor's Meetups, and was told he and his partner have been in the business for some years.  That's why I requested them to show me the docs on the closed deals to check their credentials.  I was also planning to have them take me to the project site to do a walk through so I can get a good idea of the rehab cost.  The property is in a hot market of CA, not far from where I am.  But of course there are some steps I need to take before lending in second position, and it's always good to know the borrower's true qualification.  I'm in the process to establish that business relationship.  I'm aware of the risks of being in the second position and that's why a premium has to be charged to compensate for the risks.  I'm not lending to projects anywhere out of my sight.  The borrower is also open to equity sharing.  Thanks again for sharing your insight!  That's very helpful. 

@David Begley  Thank you very much David, for your input!  I totally agree with you, here in CA the market has been very crazy, definitely more money chasing deals, and the loan needs to close quickly.  I'm trying to find a good balance between being too strict and too lenient for lending guidelines.  I'm not using income as the main reference...just want to take a quick look at the income of the borrower, especially when I haven't done any business with this borrower, and I just started out in private lending.  I figured the more I know about the borrower, the safer it is.  The main reference I would use are the deal itself, the experience of the borrower and the asset.  

Thank you for sharing your thoughts with me!

@Account Closed   Thank you for all your help!  I requested the following docs from the borrower yesterday.  

1. Personal tax return and business tax return of 2014.

2. W2 or 1099 for 2014 and 2013.

3. Appraisal of the ARV if you got one from applying for the first position loan.

4. Break down of the repair cost.

5. For the closed deals, please provide lender reference, title companies or final HUDs, hazard insurance provider, realtors info. 

@Jeremy Tillotson  @Sam Craven  @Derek T.  Does any title company allow you to do name search?  I went on First AM title company, it seems that I have to have an account in order to do anything.  Which title company do you use?  Thanks for the info.!

I would like to find out how private/HM lenders verify the track record of a rehabber.  Your help is highly appreciated!  

Congrats Patrick!  My!  I normally don't leave comments.  But I'll do this time because I'm doing the same thing tomorrow.  Want to focus on real estate investment and participate in security market investment as well.  Best luck to both of us! 

Kate

@Dave, a couple more questions regarding the loan you mentioned above:

1. is there pre-pay penalty?

2. is there point charge?

3. is the lender reputable?

Thanks so much Dave!

@ Dave, thanks much for the loan info.! I have landlord experience in residential. Mind to share the lender info. for the loan you mentioned above? I'll try to get a loan from a lender that can offer lower rate. If not, I might have to go through one of these lenders you mentioned above. Your help is much appreciated!

@Ali, listing price is $490k, we are trying to nail it at $450 or below.