All Forum Posts by: Michael Kinsella

@Tammy Frizzell Two reasonable starting points...

1. Network --> Hard Money Lenders --> Filter by state on Bigger Pockets

2. Attending local REIA events to network with HML reps, individual private lenders, and other investors for HML referrals.

HMLs will also look at FICO and your liquidity, but from what you've said above, you shouldn't have a problem getting financing.

The margin on your deal is hefty and you have experience; the experience most HMLs will look at is recent completed deals.

Be sure to speak with enough lenders so that you have options and be sure to understand;

1. Leverage (LTC/LTARV limitations)

2. Pricing (not just the interest rate, but also origination points, fees, and pre-closing costs)

3. Term length

4. Prepayment penalty (if any)

5. Construction draw process/timing

6. Extension fees

Hope this helps,

Michael

@Brandy Gniazdowski Sounds like a profitable learning experience. Plans for another soon?

@Lyle Perkins I've seen historically that rates out west for HMLs tend to be lower than in the midwest.

We're seeing interest rates in the high single digits to low double digits for HML short-term products.

I might expect rates somewhere 100-200 bps lower than that in SoCal.

The Network --> Hard Money Lenders tab on BiggerPockets can be a good resource because you can filter by state.

Two good answers above by @Steven Goldman and @Andrew Postell

My two cents from the lender perspective...

1. Speak with as many reputable lenders as you reasonably can. Two good starting points are the Network -> Hard Money Lenders tab on BiggerPockets and even better in-person REIA events. This will give you a good idea of what the market will bear for your specific credit profile and deal type(s). Also, this is how you gain leverage is by having multiple options.

2. Be as organized as you can. I would recommend this to any borrower. Document production slows deals down quite often; the more organized you are, the faster and more frictionless the process will be.

Congrats on a successful flip!

Sounds like a great project! Plans for another soon?

Nice. Sounds like a successful project and that you gleaned some great understanding in building systems - key for scaling from what I've seen.

Plans for another soon?

75% LTARV is pretty much the ceiling from what I'm seeing right now - same as what others have said above.

@Spencer Ross Congrats on a successful flip!

Awesome.

Nice that the bank didn't stipulate they needed to be the 1st and only position.

Plans for another new construction project anytime soon?