All Forum Posts by: George Despotopoulos

Hi @Ashley Sanchez we're a new online lender. I do not if you're looking for someone local or not, but feel free to let me know. We'd be happy to help out in anyway we can.

Sounds good. Best of luck Isza. Let me know if you ever have any questions.

@Joe Geist sounds good! Hopefully we can work together in the near future. Let me know if you ever have any questions or want to compare numbers.

Hi @Abraham Saldana

While I understand your rates are all extremely low, I would say your best bet is to refi one of the properties you feel you have the most equity in and use the proceeds from it to buy another property.

Similarly to what @Ralph R. mentioned, like small banks/credit unions, we do not care how many loans you have, as long as you're current of course, and are fine with lending to an LLC (we do require a personal guarantor) or yourself as an individual. We go up to 75% LTV on purchase / 70% LTV on cash-out refi. For 30 yr income-producing rentals we require a minimum 1.1x debt service coverage ratio (measured as net income for the property divided by the loan payment).

Usually if the DSCR can't cover, we would be able to offer hard money at a longer term than traditional and once a borrower stabilizes/gets higher rents they can refi into a lower rate, but still would require the same LTV stated above.

@Carlos Araujo Good Luck. I would suggest doing your first flip in an area you are very familiar with and currently live within 15-20 miles of that property. 780 credit score and 20k in cash is a good start but it depends on how big of a project you are looking to execute on. 

Hi Frederico, welcome to BP. Our website is mofinloans.com. We do both rental and hard money. The hard money  is not yet reflected on the site but feel free to contact us at my signature with any questions. 

Hey @Bobby Shipman welcome! First post and getting right to it, I like it! 

If you're looking to obtain financing from what some refer to private lenders or non-bank lenders, you should expect a little higher rates than traditional lenders (i.e. banks). Also, a lot of non-bank lenders such as our self, pre-qualify you and issue a rate on a multitude of factors, such as: LTV, property's value, and experience. I cannot speak for all, but we do not require a personal income check, we only look at the property's income (if this is a buy and hold investment property to be rented out) and the minimum amount is usually 50K.

Also, depending on what you're looking to invest in (fix and flip or rentals) you will get different terms and there's different requirements.

Feel free to reach out with any questions or if anything needs clarification. 

Best of luck.

Hi @Matt Engle there are many questions. Is this gift money? Also, how much of fam/friends money will be used for the down-payment. 

Usually lenders have a set requirement on how much of the down-payment can be gift money.

Also, what sort of investment vehicle would you be using? Would it perhaps make sense to you to form an LLC and have the funds deposited in the entity's operating/banking account. Then name anyone who has invested capital as a minority member in the operating agreement. This is just a thought, you should seek local counsel and a CPA to see if that makes sense for all involved. It could help.

@Rachele Ramirez for rental it may be tough to get less than a 50K loan from private or specialty lenders. Your best bet is finding a partner or saving up a bit more and looking for properties where you would need at least that 50K minimum to purchase.

@Kevin Fermin hard money lending has shorter terms, usually 6 months or 12 months, we're flexible with regard to the term. 

Typically if you take a 6 month term (or even 12mo), and for whatever reason you can't make the balloon payment at the end (also known as maturity date) you can request an extension. The lender, depending on the circumstances of the deal, will usually charge an additional % to you in order to extend the term of the loan. BUT this is not always a given, the lender could refuse your request and foreclose on the property. 

Also, we offer no prepayment penalty on our hard money loans, but this is not consistent across the board as I have heard of others lenders that do. 

With hard money you make interest only payments for the duration of the term of the loan and at the maturity date you have to make that balloon payment of the principal you borrowed. 

Rates are higher with hard money, some I've seen go up to 14-16%. Our interest rates for hard money are typically in the region of 10-13% and the origination cost charged to you for us to make the loan is 3-4%.

The advantages of taking hard money are that it's a shorter term commitment from you, and further, with us at least, there's no prepayment penalty to pay it off as quick as you can, borrower credit is not a factor, and nor is the borrower's personal income. We look to the property's value to assess the rate. 

It's important to be aware that significant criteria of lending hard money to a borrower is the borrower's experience in this space. Usually less experience on the borrower's end means a higher rate and lower LTV, in other words it may require a higher down-payment to secure the funds.

There are also times where a hard money lender may not lend to an inexperienced borrower and outright deny them for their inexperience. 

Feel free to reach out with any questions.