All Forum Posts by: Paul Higbie

Becky,

I would find them and check them out the same way I would do the same with any other service provider or contractor:

• Talk to other investors
• Go to investment clubs and ask around
• Google search to find  and then ask others about them
• Get references, and call them

Happy hunting, this is a big decision

Simo,

Neil is correct that in the investor world lenders can, and frequently do, ask for just about anything.  I know that because I am one!  But, you can always negotiate to try and get better terms, release of collateral when some milestone is achieved or anything else that makes sense.

Paul.

Explaining the benefits of using hard money is sort of like having to explain your jokes (because they are not funny).  An investor needs to know the following, and then it will make the decision to use hard money a lot easier:

• Use less of your own cash than a bank
• Close quickly, and use that as a negotiating tool
• Keep all of the profit, rather than splitting with a partner
• Stay in control of your deal, rather than having a partner to answer to
• Borrow the repair funds

Wash, rinse, repeat.

Hard money is not the solution to every financing question but as an investor you need to understand the proper uses for hard money and then it becomes a simple analysis of your particular situation.

Yes, this is completely normal.  The lender is taking a higher risk with an investment property than a primary residence because if the borrower on the investment property has financial difficulties, they will let the investment property go first before they let go on their primary residence.

Find a local, portfolio lender who will make the loan for you and build a relationship.

I am seeking input on when and how you market your flip project. I am a hard money lender in the Kansas City area and I share good tips with my borrowers so that they can make more money and have a better flipping experience. I am specifically seeking input and ideas about marketing a flip, prior to or in addition to putting it on the MLS. So, with that in mind, here are a few specific questions:

• When do you start marketing your flips, during construction phase or do you wait until it is market ready? Why?
• Do you put them straight onto the MLS or market them as FSBO during construction?
• How do you market your flips, other than MLS?

The market is very good here in the KC area but investors are always looking for a great way to move property, quickly, and I like to share good ideas and tips.

And also so you can send them to your favorite hard money lender, right Mark??

Paul.

Jeremy,

What is the issue that prompts you to need a real estate attorney?  I can recommend a few but they all have their specialty, and price range.

Paul.

Tyler,

Have you contacted Property Tax Advisory Group, specifically Richard Lohrmeyer?  They work on a contingency basis to help you lower your property taxes.  Let me know if you would like to talk with him and I will connect you.

Paul.

Hello Ramon,

I am curious who did you receive your pre-approval from?  Is it hard money for purchase and rehab or conventional for holding a rental property?

Paul.

Hello Olga,

This is probably state specific so I am going to avoid making a blanket statement. I will also preface my answer by saying that we are a hard money lender in the Kansas City area so there may be some differences both by state/region and by type of lender.  

We REQUIRE all of our loans contain personal guarantees.  That simple, nothing to discuss.  If the borrower will not provide a guarantee then they must not believe they will be able to pay it back so why should I lend them money.