All Forum Posts by: Kenneth E.

Sorry to hear, mike.

BTW mods, I wasn't sure which section this post belongs in.....so feel free to move it to an appropriate one if it will get more exposure and help some more folks out .

Will Barnard The @ feature doesnt work from my phone..... :)

@will Those are great points! Thanks a ton. I'm open to more suggestions.....if anyone has them. :)

Aaron Junck Great, let us know if it works for you. It is pretty solid as far as Eastern Iowa is concerned, but I didnt check the data for any other states.

I found an interesting site called Beacon. http://beacon.schneidercorp.com. It seems to offer online property records (basic info is free) for several states including:

Alabama
Arkansas
Illinois
Indiana
Iowa
Kansas
Michigan
Minnesota
Missouri
South Carolina
South Dakota

This should be handy for anyone who thought their county data isn’t online (though not all counties are included).

Now, if we can just get the company to publish the county data on a CD’s (Excel) and sell it… :-)

Hope this helps.

Gene Hacker You made an interesting point. The question is where to find the true private lenders who prefer longer term loans.

When you say you offer 8% to 12% depending on property tpe or ltv, can you specify all the conditions for making the determination on which way you go? Are you the borrower, or are you the lender?

What ltv for 8%? How much of a down payment? Who pays closing costs? Appraisals?
What ltv for 9%? How much of a down payment? Who pays closing costs? What length of time?
What ltv for 10%? How much of a down payment? Who pays closing costs? What length of time?
What ltv for 11%? How much of a down payment? Who pays closing costs? What length of time?
What ltv for 12%? How much of a down payment? Is this for 100% financing? What length of time?

Thanks!

Thanks Marc Donovan Good to know there might be some response from such a letter. ha!

Honestly, I know a ton of lenders through the local REIA, but they all only lend on short term flips. They must like going for the quick buck, which is rather surprising to me. I have asked around to learn who lends on mortgages… but few people seem to know anyone who lends for buy and hold. So, I figured I would try the mailer route and reach out to some people who may.

I am working with a realtor who analyzes the local mls and identifies the highest performing multi-family properties (highest cash on cash returns, highest CAP rates, etc.) in my area. I intend to acquire some of the better ones from his list and have a bit of money to contribute, but I would like to use some private lenders to stretch my dollars further as down payments (or just covering closing costs) and acquire several of these high performing properties.

So, maybe the better question to ask on this thread is: what are reasonable terms to ask for from private mortgage lenders?

If I were to send mailers and suggest 10 year mortgages at 10%...would that seem reasonable enough to get a response? Or what about 12%? 15 years at 12%? I have never done a private money mortgage so I don’t really know what would attract such lenders to work with me as far as terms, rates, down payments, etc.....

Thanks for the input, btw!

Ken

Ann Bellamy any thoughts on how to make it better?

Hey guys,

I have come across a couple lists of high net worth people who have been lenders on private mortgages in the local county and I am considering sending them a letter seeking REI loans. I have read all the posts about sending letters to strangers asking for money but I am not asking them to INVEST in anything. Rather, I am seeking private LOANS for rental properties. So, please—no lectures on SEC regs!

For those of you who actually lend on long term private mortgages (not short term Flip hard money lending), can you give some thoughts on the letter below? Is it too cheesy? Should it include more? Can you help give some pointers on what would make it more effective? It might yield a zero response rate and I am ok with that…just trying a new avenue for the experience. Plus, if it works, it will be right here in the open so other BP members might be able to use it for their own purposes.

January 18, 2013

Name Address

Dear :

I came across your name in the xxxxx county public records as someone who is a local property investor. Either that or, you’re a private lender who loans on properties…

I am writing to you to discuss some possible ways that we can work together. I, too, am a property investor here in the area, and I’m always looking for other “serious players” with whom to network, exchange ideas and resources, and ultimately, with whom to create a long-term, mutually beneficial relationship.

Specifically, I am seeking private money lenders who are looking for better returns than they are getting in their savings accounts, CDs, money market, or from their retirement fund. The returns of 9%-11% (negotiable) would be for first-position private mortgages on cash-flowing multi-family properties which are secured by real estate and are fully insured. Even the payments to you will be deducted straight from my bank account. No waiting for a check each month! Terms are negotiable.

Thanks,

I look forward to meeting you!

Yours truly,

XXXXXXX

P.S. Oh, and by the way, if you want to talk sooner, you may always reach me on my direct line at
XXXXXXXXXX, or you can email me at XXXXXXXXXXXXX. Thanks! It’ll be great to talk with you!

Hey guys, I too am from Pittsburgh. Search the forums for Pittsburgh and you will see some previous discussions that a few of us locals have had about the area. If you are looking to network you can try ACRE, the local REI association.