Hard money lender with a twist??

Question

Hello all....

I will be needing the services/help of a hard money lender in the coming months as I am embarking on my third single-family home--flip--, here in Miami, Florida.

I have found one online that allows me to live in the property as I renovate (my business model and the main point here), but awful YELP reviews have me steering away from them (Athas Capital). That, and they have not responded to 2 emails over the last week-and-a-half, one very detailed, stating my case......

I understand the hesitance of lenders not wanting a sheet of drywall falling on your head during fix-up, and then not being able to pay your hard money lender back because of severe head trauma, but that can happen anywhere... You could be in your main residence and have a sheet of drywall fall on your head as you redo one of your bedrooms....how is that different?

Anyway, if anyone has any insight into a trustworthy lender who really wants to help (and make money too), I would be interested to hear any of your ideas/contacts.

Thanks for listening...

Ray

Miami, Florida

Nghi Le · Answer

I'd steer clear of any HMLs that would lend to you while you live in the property; HMLs are not supposed to do that.  That's more of a conventional loan, FHA + 203k or HomeStyle Renovation.

S-Corp is fine.  What @Chris Seveney means to say is an entity, not necessarily specifically an LLC.

Ray Egan · Answer

Thanks Nghi Le.

When I hear FHA I get a knot in my stomach..... Trying to find a loan where the paperwork is minimum and not wanting to have to justify every move I make... Just free to work hard on a place, live in it while doing it, turn it around in a reasonably quick time and list it for sale... I cannot be the first person wanting to do it this way... I have met a mortgage broker (before the purchase of my first house) and we did sit down and talk but my knowledge was a lot less then..... perhaps I should reach out and tap his knowledge of local folks who could possibly make this happen for me....

I appreciate all the suggestions.... keep them comin'!!

Ray

Miami

Raymond J. Rodrigues · Answer

Hello @Ray Egan, fellow Ray down here in Miami! I know of a hard money lender that I usually use for my deals that’s pretty good!

Ray Egan · Answer

Thanks for the advice. I do have an S corp.... probably easy enough to switch to an LLC.  and yes, to take a profit and move on to the next is my plan of action. Just a little more swiftly than the last two conventional mortgages...

I will research that a bit more. Perhaps call the attorneys that got me set up as an S corp (originally for a boat-cleaning company) and let them know my plans and see what they say....

Again, thanks for the input!

Ray

Miami, Florida

Hard money lender with a twist??

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