All Forum Posts by: Stacy Patel

Hi Charlice,

Great topic! Fix and flip projects can be really rewarding, and securing the right funding is crucial. 

Developing strong relationships with lenders can lead to better terms and quicker approvals. Networking with private money lenders or hard money lenders who specialize in real estate can also be beneficial.

Happy to take a look at the deal! Sending you a dm :) 

Hi Ruth,

For STR (Short-Term Rental), MTR (Mid-Term Rental), and second/vacation homes, DSCR Loans (Debt Service Coverage Ratio) are often the best option. These loans focus on the property's income potential rather than the borrower's personal income, making them ideal for investment properties. They offer flexibility and are specifically designed for rental properties.

Best, Stacy

Are there any new opportunities or pitfalls to be aware of? Your advice is appreciated!

Me personally is PML - private money lending! 

Faster approval, more flexible terms, and less stringent qualification criteria.

Tip: Establish a solid relationship with private lenders and clearly outline your investment plan to gain their trust and secure favorable terms.

Provide regular updates on the loan status and any changes that may occur. This helps build trust and keeps borrowers informed.

Hi Carlo,

Interest rates for DSCR loans can vary based on several factors such as property location, borrower's credit profile, and current market conditions. Generally, rates range from 4.5% to 7%. It's always a good idea to consult with multiple lenders to get a better understanding for your specific situation.

Hi Trevor,

It's usually best to line up your financing first, especially with hard money or private money lenders. Having a pre-approval or at least an established relationship with a lender shows sellers that you're serious and can close quickly, which can make your offer more attractive. Additionally, it can help you avoid the risk of having an offer accepted but not being able to secure financing in time. However, if you find a particularly good deal, you could submit an offer with a financing contingency while simultaneously reaching out to lenders to speed up the process.

Hi Jin,

I specialize in private money lending and can assist with your 10-unit apartment deal. Private money is perfect for properties needing work and not qualifying for traditional loans. Please PM me with more details, and we can discuss how to proceed.

Hi Michael,

It's great to hear about your successful journey in real estate. Transitioning into hard money lending is a natural step given your experience. To get started, educate yourself with resources like "The Book on Private Money" by Matt Faircloth. Ensure your attorney is well-versed in lending regulations and set up a strong legal framework. Develop thorough underwriting standards, leverage your network for marketing, and streamline your documentation process. Starting local in Pittsburgh is wise, and as you gain experience, consider expanding your reach. Best of luck in your new venture!