All Forum Posts by: Trevor Finn

Hey @Tekoa Glover,

Yes, you’re correct. Under the Equal Credit Opportunity Act (ECOA) and the Fair Credit Reporting Act (FCRA), if you are denied credit, the lender is generally required to provide a written denial notice. This notice should include the reasons for the denial or a statement informing you of your right to request those reasons within 60 days. If the lender used your credit report as part of the decision, they should also include details about the credit reporting agency.

It’s worth following up with the lender to formally request this denial letter and ensure they’re compliant. If you’re unsure about their response, consulting an attorney or contacting the CFPB may help clarify your rights further.

Hope this helps

Hi @Caleb Johnson,

Great questions! When vetting a hard money lender, ask about their interest rates, loan terms, and fees (origination, prepayment penalties, etc.). Make sure you understand their timeline for funding—speed can be crucial for flips—and their experience with similar projects.

Look for a lender with clear communication, transparency, and flexibility. A local lender can be helpful since they often understand the market better and may offer more personalized service, but it’s not always necessary if the terms are great. 

Have you identified a property yet, or are you still exploring options?

Hi @Brendan Duggan,

*I am not affiliated with any of the companies mentioned*

It sounds like you’ve built a great lending pipeline! For selling performing notes, companies like Mission Capital or Watermark Capital Partners specialize in purchasing notes, including DSCR-based ones. Another option is exploring secondary market platforms like NotesDirect or Paperstac to streamline sales.

Hurdles you might face include ensuring clear documentation, compliance with DSCR underwriting, and strong borrower credit profiles. Having mortgage software is a great step—making sure the loans are well-documented and attractive to investors will make the process smoother. Have you connected with any note buyers directly yet? They can provide insights into what they value most in performing loans!

@Shwetha Pindikuri,

Assuming an FHA loan with a second mortgage can be tricky, but it's definitely doable with the right lender. You might want to check with local credit unions or community banks, as they’re often more flexible with second mortgages. 

Another option is to explore private lenders or HELOCs to cover the equity. Have you looked into these? 

Good luck—it sounds like a great opportunity!

Hey @Thomas McPherson,

I've heard that CABIs (Collateral Assignment of Beneficial Interest) can be a fantastic tool for scaling your lending capital! They provide flexibility and efficiency, especially for experienced investors.

How have you found the terms and structure compared to traditional options?

Hey @Kevin Oh,

It’s great that you’re shopping around for the best deal! A good lender should understand that. You could try explaining to your previous lender that while you value the relationship, the numbers make more sense with the new lender this time. 

Let them know you’d still love to work together on future deals if the terms align better. A strong professional relationship should be able to handle honest communication!

Hope this helps!

Hi @William Causey,

Great question! It depends on the deal. If you're competing for a hot property or need to close quickly, fast closings can make or break the deal. However, for longer-term profitability, flexible loan terms often have a bigger impact, especially with interest rates or repayment structures that align with your goals. Ideally, finding a lender who offers a balance of both is key. 

What kind of deals are you focusing on?

Hey @Bhargav Hirpara,

That’s exciting! Before recommending lenders or brokers, a commercial lender would typically need some details to assess your qualifications. Here are a few key questions:

1. Property Details: What’s the purchase price, and is it an existing, operational gas station or a new build?
2. Your Experience: Do you have prior experience owning or operating gas stations or similar businesses?
3. Financials: What’s your estimated down payment, and do you have proof of funds?
4. Income and Credit: What’s your credit score, and do you have other sources of income to support the purchase?
5. Property Revenue: Does the gas station have existing revenue or leases (e.g., convenience store)?

Once you’ve got these details, it’ll be easier for you to connect with the right lender or broker.  

Hi @Nadia Jones,

Great questions! For newer developers, credibility often hinges on clear and compelling financial documentation. Here’s how brokers typically view these:

1. Loan Term Sheet vs. Commitment Letter: A loan term sheet shows intent but isn’t binding so that brokers may see it as preliminary. A loan commitment letter carries more weight as it confirms lender approval, signaling a stronger ability to close.
2. Addressing Closing Concerns: A commitment letter meaningfully reduces concerns, especially when paired with proof of equity and a track record of performance, even if on smaller deals.
3. What Brokers Look For: Key factors are a reputable lender, clear terms in the commitment, and evidence of funds for equity and reserves. An experienced team or partner can also help boost confidence.

Providing a combination of a solid commitment letter, proof of funds, and a clear, professional approach signals you’re serious and capable of closing the deal. Best of luck building that trust!

🛡️ 𝗣𝗿𝗼𝘁𝗲𝗰𝘁 𝗬𝗼𝘂𝗿 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁: 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗘𝘀𝘀𝗲𝗻𝘁𝗶𝗮𝗹𝘀 𝗳𝗼𝗿 𝗥𝗲𝗮𝗹 𝗘𝘀𝘁𝗮𝘁𝗲 𝗣𝗿𝗼𝘀 💡

𝗕𝘂𝗶𝗹𝗱𝗲𝗿𝘀, 𝗹𝗮𝗻𝗱𝗹𝗼𝗿𝗱𝘀, 𝗮𝗻𝗱 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀—your property is your asset, but risk can turn it into a liability. Here’s what you need to stay covered:

🔨 𝗕𝘂𝗶𝗹𝗱𝗲𝗿’𝘀 𝗥𝗶𝘀𝗸 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲: Protects construction projects from unexpected damages—fire, theft, or storms. Don’t break ground without it!

🏠 𝗟𝗮𝗻𝗱𝗹𝗼𝗿𝗱 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲: Covers rental property damages and liability, keeping your cash flow safe from tenant mishaps.

☂️ 𝗨𝗺𝗯𝗿𝗲𝗹𝗹𝗮 𝗣𝗼𝗹𝗶𝗰𝗶𝗲𝘀: Adds an extra layer of protection for high-value assets. When standard policies fall short, this steps in.

💡 𝗣𝗿𝗼 𝗧𝗶𝗽: Always reassess your coverage as your portfolio grows or your projects evolve. The right policy can mean the difference between a minor setback and a major loss!

📩 𝗚𝗼𝘁 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀 𝗮𝗯𝗼𝘂𝘁 𝘆𝗼𝘂𝗿 𝗰𝗼𝘃𝗲𝗿𝗮𝗴𝗲? 𝗟𝗲𝘁’𝘀 𝗰𝗵𝗮𝘁 𝗮𝗯𝗼𝘂𝘁 𝗵𝗼𝘄 𝘁𝗼 𝘀𝗮𝗳𝗲𝗴𝘂𝗮𝗿𝗱 𝘆𝗼𝘂𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀.


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