All Forum Posts by: Patrick McCandless

Syed Khan What are you referring to regarding getting "screwed over" by the lender and other party? FHA loans are great for owner-occupants. Really the only downside is that the mortgage insurance never drops off and the appraisal rules will be a little more strict.

Thanks J!

@Jeff S.thank you for the very informative words. It sounds like I have some research to do regarding lending laws for a situation like this. Never heard of not being able to loan more than 10% of net worth and never thought to go to a HML for help with getting a loan from a family member.

Hey Chance and welcome to BP! Man I wish I got started as young as you are! Take advantage of your parents' triplex situation as much as legally possible and read/listen to as much as possible on here. Some really great info and people on here so soak it all in! Let me know if I can help in any way.

Good luck!

I guess another question is if it will really be worth it to that relative to do this. She will be essentially paying 4%+ interest (give or take) on whatever amount she loans me since she will be cash-out refinancing. Her current rate is sub-4%. I was thinking somewhere around 8-9% to her on 6-12 month terms depending on situation. I figure 3.5-4.5% interest income to her is better than it sitting in equity not making anything. And for me this is a great way of getting started in the area instead of being a newbie to local hard money lenders.

@Kris Haskins @Simon Cox @Elena Jobson LOL yes my friends I agree, but I have no clue on where to start with contracts/documents for the loan(s) since I've only ever used conventional lenders. Also, I've only done business in AZ and this will be the first deal(s) done in California so I'm not sure if there are any differences. Think a title/escrow company would be able to help with these docs?

Arjay, have you spoken with a local lender yet? Or even a few local lenders. The lender I use on all of my deals is on speed dial and speed text whenever I have questions and he is happy to do so since I bring him so much business.

I think I may have given you the wrong impression. This relative DOES want to loan me the money, but does NOT want to take on any more than that as of right now. 

Hey Nick! Welcome to BP. There's a ton of great info on here as you're learning first hand. If there's anything I can help with don't hesitate to reach out. Happy to connect.