Hard Money - Your Advice Requested - Wisconsin - WI

[Joe Gracyalny]

Hey BP Community,

I am on my first couple deals and am looking into additional Hard Money/Private Lending Options.

Networking and building relationships is obviously a key help in this area.  In the meantime I am just looking for some general advice or reviews of larger companies or individuals that do investor loans in Wisconsin.

I want to get something in the 9-10% area preferably with no points upfront, or limited.

Feel free to weigh in.  Any and all are appreciated.

Thanks Team,

Joe

[Caleb Jordan]

For the HML companies no points up front will limit your options, you will still find HML who can do that but it will narrow your choices.

There is definitely loans available in the 9 to 10% range, but you may have lower LTV and be putting more money down, like 20% instead of 10%

If you are borrowing for rehabs make sure you ask about draw process, fees, restrictions on changing plans, draw schedule, time to process it etc.

As you shop don't just look at rates ask how quickly they can close, if they have discounts for repeat clients, in house appraisal or 3rd party. What other fees are accrued at closing.

A nice niche to think about is lenders who have programs where you don't pay interest on rehab funds until you actually use them. Normally if borrow funds for repairs they start charging interest day after closing on the money even though it is just siting in escrow account. Some HML have loans where you don't pay interest until you request a draw and funds are disbursed.