Any Legitimate Hard Money out there?

[Adam Klugh]

I've been looking for Hard Money in Michigan. It's tough. LOT's of what appears to be a sketchy leads. Can anyone recommend a legit Lender that will finance a good deal? I'm new but I'm not inexperienced. I have 2 successful buy/renovate/rent/refinance under my belt using traditional financing. I have a great team and we are looking to move on another deal but I need the funds. I know I'm going to be paying 10+ percent for a short term before I refinance the loan. Any success stories with specific lenders in MI.

[Jay Hinrichs]

@Adam Klugh OK I have been a HML in my days .. and I did loan in Detroit in the early 2000s and got out before the melt down.

that said. here is what I see on BP all the time.

this OP who says 6 to 7 % money that TOTAL BS there is no 6 to 7% HML's BANK loans to a very established borrower who can show years of track record lots of money in their bank and I don't mean 20k . so forget that

the company you talk about that wants 3k up front your BS meter is correct they make money on the 3k and you will play hell getting them to fund a deal for you they will just keep telling you the deal is not good enough until you finally quit asking .

And all these guys that post on BP about loans form 5 k to 50 million rate starting at 3%  fico 500 .. all of them are NOT REAL they just want up front money.. THERE IS no funding like that it does not exist for RE investors.. the ONLY 3 % money  is for the very wealthy that put up their securities as collateral and then borrow at 1 over libor.. so you have 5 million in securities at one of the big houses and they will lend you 2.5 mil at 1 over libor 2 to 3%  but that its.

So here is what hard money is universally around the country so as @Aaron Mazzrillo suggests instead of scratching your head and thinking your going to find some unicorn HML.

HML rates are 10 to 14% on rate and 2 to 4 points .. usually need at least 20 to 30% in cash into the deal.. one year terms.. etc etc.. once you establish yourself with these folks over time.. the cash needs can drop and rates drop a little.

ON the west coast were we have a VERY stable RE market and TONS of money chasing deals.. you can get HML for 1 and 9 1 and 8 sometimes.. but that's it and that's Prime CA .. and it requires 20 to 30% cash into the deal..

the other thing you have a hard time with in some markets and much of the rust belt is your buying very inexpensive proeprteis and lenders don't want to make tiny loans.. they are not worth the time and the risk.

So a 50k loan at 2 points makes them 1k in fee's  that's a ton of risk for such a small loan and if it turtles you can lose half your money in that market no sweat..

that is the other major hurdle. 

so find a local HML go meet with them.. settle on their terms and get to work.. trying to find lenders on the internet that will do MI @Darren Eady states is very tough... bad rap that whole state because of what happened in Detroit.. Many folks lost many many million so dollars investing in that city .. so you get painted with that brush unfortunately.. so that's why you need your local HML like me with a little pot belly my big cigar and I take a liking to you.. that's how it works.  :)