All Forum Posts by: Mike Burkett

@Jonah Bee Jonah, how much experience do you have?

@Deborah Drexler  What state is Norfolk County in?  I've never heard of any of those companies.  A few things to keep in mind.  Do not pay any fees upfront.  Ask for a summary of all fees charged.  Negotiate to 2% origination fee if possible.  If it is a small deal, origination fee will be higher.  Do not pay more than 12% interest.  Happy to answer any questions for you.

@Jay Wood  More than likely Wells Fargo will be standing at the auction alongside the guy with $35,000 and will bid the property up to $60,000.  If no one bids higher than $60,000, Wells will walk away as the proud owner of the property.   If someone bids higher than $60,000, Wells will get paid their $60,000 and the bidder walks away with the house, free and clear. 

@Jeff R.  There are loans available that are more competitive than 3/11.5%.  

I'd like to come.

@Account Closed  I would think any realtor could get you that list.  

@Hao Dinh  There are plenty of lenders in Texas that would be happy to help you.  If you can get a bank loan, it will be a better rate than hard money.  If you have to close in less than 3-4 weeks they may have a hard time with that schedule.  You will generally get more money from a hard money guy, so less money out of your pocket.  Good hard money guys will not charge you anything before closing.  Watch out for money required up front.  I'd be happy to answer any questions or help you out if I can. 

@Josh Hackett  It does seem high.  If you would like a copy of their estimated fee sheet, I'd be happy to send it to you.  

@Derrick Gordon 3 weeks for hard money loan is an eternity.  1 week is very realistic.  

Mike Burkett - hard money lender - SFI Loans, LLC

@Kelly Moniz  You don't want to be "stuck" in long term loan.  You have no liquidity and you want liquidity.   Your dad's credit score is suffering from the credit card debt.  

As you stand, you are foregoing any equity appreciation on possible acquisitions because you won't be able to buy due to lack of liquidity and possibly bad credit.   I'm assuming that your return on equity for all of your existing properties is higher than 7% and you would expect at least that on any future acquisitions.  

Depending on dad's credit score, I would do a cash out refi on one or more properties or a line of credit secured by a bank.  You will substitute the expensive credit card debt for cheaper refi debt.  Your dad's credit score will increase.  You will replenish your credit card borrowing capacity.  If you take out more than the balance of the credit cards, you will now be paying 7% (+ or -) annually on money to buy properties that yield more than 7%.  Some long term loans have prepayment penalties and some don't.  If you are going to be "stuck" it may be for a short time, but not forever.  You can always pay it off if you become flush. 

Mike Burkett -- Conventional and hard money lender - SFI Loans, LLC