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Updated about 1 year ago on . Most recent reply

User Stats

38
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3
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Suzanne Lee
  • Covington, LA
3
Votes |
38
Posts

Small Lender lending with a 401K

Suzanne Lee
  • Covington, LA
Posted

I have a question. I am a small lender just lending to investors for flips and refi's. I need to ask anyone that does the same type of lending a question. How long do you hold money for if someone asks you for a loan and you hold the amount that they need? My investors usually close within a month but recently had someone doing a short sale so the process took two months just for them to agree on the sale amount with the bank. I havent charged any fees in the past but I feel my money is just sitting there not making any money. How long do you hold? Do you charge fees during the hold time? How do you handle these situations. I know banks hold money when approved for loans but that is different than me. I also dont know if I am considered a private lender or hard money lender. I think I am a private hard money lender! :) Thank you for any input!

Most Popular Reply

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17,872
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6,264
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Dmitriy Fomichenko
#1 New Member Introductions Contributor
  • Solo 401k Expert
  • Anaheim Hills, CA
6,264
Votes |
17,872
Posts
Dmitriy Fomichenko
#1 New Member Introductions Contributor
  • Solo 401k Expert
  • Anaheim Hills, CA
Replied

@Suzanne Lee,

I do not wait for the borrower. I aim to deploy funds as soon as I have them available. I see your problem because you work with a single borrower. In my case, I work with a broker who has a dozen loans available every week. 

  • Dmitriy Fomichenko
  • (949) 228-9393
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Sense Financial Services LLC
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