All Forum Posts by: Patrick Prunty

@Eden Meng

Hi Eden

In my checkbook IRA I have owned many rentals using leverage...UBIT and form 990-T is a drag...the tax liability isn't major during the hold but if you end up moving forward, I would make sure to payoff the loan prior to selling the asset to avoid tax liability on gain. Ultimately, after years of navigating this space and learning through my own personal experiences, I have moved my IRA funds into more passive investments, i.e. I lend money secured against real estate and collect interest. Although I can't use leverage in this case, things are much cleaner and easier.

@Jacob Mistric

In my experience, HMLs write their note on a 12 month term and so for this specific seasoning period. There are some situations wherein a lender can provide the back end refinance in less than 6 months seasoning period but generally speaking, in renovating and stabilizing your rental, you'll need more than 3 month seasoning regardless of the lender. Most conforming FNMA type lenders offer cash-out refinance with 6 month seasoning so a 12 month HML should be ample time to get the 'take out' completed.

Yes, absolutely you should speaking to a few back end refinance lenders in advance of closing on the acquisition. This is the case regardless of whether you pay cash or use a HML.

@NA Young

There are many firms out there who allow individuals such as yourself to play the bank and become a hard money lender.  These firms are awesome because they run the shop, do all the marketing, underwriting, management, etc and your roll is just to pick the loan you'd like to fund, wire the money and collect.

@Ohad Waizman

Yes, and I totally understand.  In my experience there are lenders who can help foreign investors.  Are you looking for short-term or long-term capital?

@Rick Pozos and @Nick Disney

Sorry to have missed this gentlemen but would have loved to join, network, learn and get more involved with local San Antonio Scene. I have a single family in Converse which I bought as a VA foreclosure, fixed it up and held as a rental. It was a great buy and I'd love to do more. I'd also love to help anyone who could use quick and reasonable capital.

Does your group meet regularly?  When is the next meeting?

Indeed, online reviews and referrals! 

Any lender who has no online presence (like reviews) or any lender who is not forthcoming with referrals galore is in my experience less likely to be 'legit'.

@Masood Amin

Plenty of private/collateral based lenders who care little about borrower income when making a secured loan.

Bringing on a partner is not a bad idea in my experience, however, as long as you have a good deal on hand, you end up giving more of the deal to the partner than you would comparatively with a lender.

I've never heard of a private lender charging a risk premium due to lack of employment, learning something new every day!

@Pablo Espin

Not all hard money lenders require you to take title in an LLC.

Are you talking Fayetteville AR or NC?

I recently used Legal Zoom to create an LLC and didn't mind the process. Inclusive of the filing and operating agreement but not the EIN, I paid a total of 248...that is cheap! The EIN is super easy to obtain and I was able to do so online in 5-10 minutes.

@Ephraim Nitanga

I have not worked with Scott Pasinski and Capital For Real Estate Houston.

What other lenders have you looked at so far?

What type of project are looking to do?

Hi Val

Always options if the bank or conventional lender can't help.  You just need to explore and find the right private/collateral based lender to step in.