All Forum Posts by: Michael Kinsella

Lenders generally prefer experienced borrowers because they feel it mitigates their risk.

A general rule of thumb for deals such as this one is to have about 1/3rd of the requested loan amount liquid.

You may simply need to speak with more lenders.

You can generate a list of additional ones by using: Network --> Hard Money Lenders --> Filter by state on BiggerPockets

You can try to speak with some local investors who have purchased and renovated similar properties and see who they might refer as well.

@Brandon Vanderford

Some good insights on this thread thus far.

1. Land is not a favored asset class amongst lenders. Typically you see ~50% LTV on land with market LTC possibly reaching a bit higher, but not much.

2. 200K purchase means the loan might pencil out around 100K - this is a very low loan amount for most land purchases.

Probably a local pre-existing banking relationship or an individual private lender are your best bets.

@Daniel Lopez You can use the 'BiggerPockets --> Network --> Hard Money Lenders --> Filter by state' path as a starting point.

Beyond that, if/when you encounter rejections from specific hard money lenders on that list, you can ask them for referrals. 

I like this question.

I'll answer this from an intermediary point of view, having interacted with plenty of lenders in the past.

1. Responsiveness: How easy is it to contact your lender by phone or by email? Do they respond quickly?

2. Flexibility: both on the front-end and back-end of the loan. For example, can they adjust the term length of the loan to fit the project timeline? On the back-end, can they extend the loan if the project is taking longer than expected?

3. Time-to-fund: Some lenders move far more quickly than others. Generally, private lenders move far more quickly than traditional capital sources such as banks.

4. Certainty of execution: Will they close the loan? Will they re-trade terms?

5. Opinions of others: If other investors have had a good experience with a certain lender, then it stands to reason that you are more likely to have a positive experience as well.

I hope this quick checklist is helpful

@Kristy Pedersen Congrats on a successful fix & flip! Do you plan to do another soon?

@Teresa Hoffman That sold quickly!

You guys definitely have this process down to a science.

Nice!

Congrats on yet another deal!

Nice!

What was the total renovation cost?