All Forum Posts by: David Cruise

@Jack Moran

You may run into some hurdles with banks and hard money lenders simply because of your loan amount request on the front end.  There aren't a lot of lenders willing to do 28K loans.  You may have to use an individual/private investor for something of this size to get the funds for your rehab and then proceed with your refinance plan for the perm loan. 

@Brandon Anderson There are a lot of options in the private money/hard money space for LLC borrowers who want to not only do rehab loans but also long term rental loans. Expect to pay high single digit or double digit rates for a rehab loan but lower than that for a rental property loan for a long term hold. As mentioned in previous comments, most private or hard money lenders require ownership of the property in an entity (LLC or Corp in most cases) depending on the state laws. NC happens to have some interesting language in their laws about lender licensing requirements. For that reason, we require all our NC loans to be in an entity to remove any doubt that the loan is for business/investment purposes.

There are private and hard money lenders that offer a rehab loan at hard money rates and then will refinance you into a long term 30 year rental loan at lower rates once stabilization of the property has been reached, i.e. rehab is complete and a tenant placed.  We are a regional lender that offers this in our 10 state footprint but there are certainly other options as well.  Just shop around to direct lenders and do your due diligence.  Don't pay upfront fees and ask a lot of questions about process, funding times, and all the costs associated with the borrowing process.  

@Drew Lofgren Our company is a leading provider of Transactional Funding.  We provide it in 44 states.  Shoot me an email or call me to discuss.   

@Shedrick Archangel you will find that each lender you contact will have different documentation requirements depending on their own internal guidelines and the loan product you are seeking. For example, some lenders require tax returns and 3 months of bank statements while others focus solely on the property itself and don't care about your tax returns. In general, be prepared to talk in great detail to your HML about the property, your plan with that property, and your exit strategy or strategies. We put a lot of emphasis on whether our client has a well thought out plan for the investment including downside risk and what they will do if their main investment strategy doesn't work out.

@Raquel O'Connor I'm glad to talk to you about your lending needs in Atlanta.  Let's connect here on BP and see if we can help you!

@Christopher Grate - I suggest getting involved in the local Meetup groups around the Charlotte metro.  There are a lot of great meetings in the area and a lot of properties move between investors at those meetings.  

@Account Closed - It is 100% financing for wholesalers to purchase a property and re-sell it on the same day for a profit. Wholesalers typically use this kind of funding when they cannot assign a contract (HUD, short sale, bank owned properties) or when they do not wish to assign the contract because the profit they are making is substantial. We find that wholesalers usually go with TF when they are making 10K or higher on a deal.

@Zach Scheirer - Yes sir.  Will do.