San Antonio Hard Money/Private Money Lenders

[Jacob Mistric]

What are the best Hard and Private Money lenders in San Antonio?  Furthermore, I have a hypothetical situation... I'm still doing my homework before I purchase my first rental.

What if I have a hard money loan that has a term of 6 months, and I can't find a bank that won't refinance until 12 months

I'm thinking the way to prevent this would be to make sure that I have a bank lined up that I know for sure will refinance in 6 months. Either that or go with a hard money lender that has a 12 month term, and a bank that will refinance 6. Is this something I can only find out at the time of refinancing, or can i find out form banks/lenders what their grace periods and terms are before I close on a deal?

[Marty Johnston]

@Jacob Mistric Most hard money lenders will offer a 12-mo term to ensure a 12-mo seasoning period. Alternatively, there are a lot of commercial/portfolio lenders who only have a 1, 3, or 6-mo seasoning period so that you can exit your HML using it's as-is-value vs an at-cost LTV (if you're creating new value). Otherwise, whatever you buy it for is what your refinance loan will be based off of as well (Original purchase price, or appraised value, whichever is less).

You'll be able to get verbal yes's from lenders on the take out now, but you won't be able to 'secure a term sheet' now on the take out until you're really ready to proceed. One of the most common reason for this is lender's don't want a term sheet sitting out there at certain terms for too long as markets can change overnight, and now they'd be originating that mortgage at a massive (potential) loss.

Hope this helps! Feel free to PM me if you wanna chat more on this.