What to Look for in a PML

[Kimberly Schroeder]

I have a BEAUTIFUL investment opportunity with a cash flowing, turnkey acquisition sitting on my plate with a DSCR loan available to me. My only problem is, I am just starting out and I do not have the cash to put down the down payment. I am seeking a PML for the down payment, but man if it didn't get mucked up and confusing by "lending" providers. Conrad Lending offers a commercial loan using my own information, credit and income as a qualification process and that seems to defeat the purpose of a PML. Should I steer clear of going through a branded "PML Company".

Help! and thank you!

[Robin Simon]

Quote from @Doug Smith:

I just answered another post advocating grabbing a partner. We're doing a loan right now (DSCR) for a realtor that has solid access to great property, but he has little money down. He found a capital partner that had capital, but not the know-how. It's a great match. Together, they formed an LLC and the deal works well. I strongly suggest finding that capital partner, turn a few deals to build your war chest, and then start to tip toe out on your own.

Agreed with this advice - better to form an LLC and do a partnership rather than taking on debt from a "private money lender" - which is typically not allowed for doing a DSCR Loan (LLCS are A-OK though)