Are there mortgage brokers for private money loans?

Question

Before the 2007–2008 mortgage meltdown, getting a conventional loan was much easier. If you could prove you had income on your tax returns whatever the source (1099, temporary positions or non full status employee positions), you could get approved. Now it seems that banks want you to demonstrate that you’ve been in a full-time job as a full-status employee with all the benefits for over two years as part of the approval process. It’s much harder to get conventional loans. Even if you have passive income from other properties, they only count a portion of that income towards qualification. My 850 credit score was also less important to a broker I spoke to and who felt I wouldn’t get qualified for a conventional 30 year fixed. Since I work in the motion picture business where you move around a lot from studio to studio, I can’t show steady employment with one single company for two or more years which means I may need to explore the world of private money. With that in mind, just like with conventional loan brokers, are there brokers who can find sources of private money I might want to check into?

Jay Hinrichs · Answer

there are not and do not let anyone tell you they are.. they are brokering for HML    ..

HML use private lender as a marketing ploy they are all HML any lender that lets a broker get a fee or advertises is a HML in the business..

a private lender the definition is you .. you have a few bucks in your IRA and yo want to lend it to someone you met at a REIA meeting and you do less than 3 ayear or so .. so you don't need a license in CA..

and for sure there are all sorts of frauds and fakes out there that will promises the moon as long as you pay them 500 fee or whatever in up front fees then you never hear from them.. they troll every social media outlet from facebook to linkdin to BP

I mean what better place to troll for those looking for money than a real estate site.   Careful.

Steve Vaughan · Answer

Actors Federal Credit Union in your neck of the woods caters to actors, musician and film industry personnel.  Heard it on a podcast recently.  They understand and lend to volatile income folks from what I understand.  Good luck!

Chris Mason · Answer

For some clarity on why you were told this, let's go ahead and go to the lowest common denominator: car sales lot.

If you walk onto a Ford lot and say you want a car that fits characteristics X, Y, and Z, characteristics that ONLY Toyota includes in one vehicle, an average Ford salesman will just tell you it doesn't exist and invite you to take a look at the F-150 or Ford Focus. The average Ford salesman isn't going to send you to the Toyota dealership!

You talked to an average mortgage person who doesn't work with self employed people, he simply doesn't have that "car" on his "lot," so he invited you to check out what he does have -- mortgages for salaried W2 people.

A super easy experiment you can do to confirm this phenomenon, call Quicken Loans and say you want an FHA loan on a triplex. They will tell you it doesn't exist and invite you to look at duplexes. But 30 seconds on biggerpockets.com tells you that FHA loans on triplex do exist...

Also, here's a song that this post reminds me of, with the "real job" part, not really directed at you but I thought it was funny: https://www.youtube.com/watch?v=Adz1aWRsDw8

Jay Hinrichs · Answer

Exactly your talking about a lender who is in business to lend I am aware there are all sorts of loan products.. but the OP is talking about a private lender.. not a company.. my point is private lenders don't let others broker their money one they don't have enough.. most private lenders will have a few hundred grand to maybe a million to put out.. how far does that go in your world.. answer not very far LOL

Scott Benton · Answer

@Steve Vaughan — thanks for the heads up.

Scott Benton · Answer

@Chris Mason — Awesome...and funny. But is t the point of all of this so we DON’T have to get a haircut and a real job? It’s what I like most about the FIRE scene myself.

Scott Benton · Answer

@Chris Mason — Thanks, Chris. That’s helpful. It is not was I was advised by a mortgage broker and sounds like I should try for prequalification regardless to see if I can get a conventional 30. I can easily demonstrate 2 years of W-2 money (from temporary staffing sources) and strong passive from occupied and professionally managed properties. I’m thrown off, I was told, by not having a “real” job.

If what you say is true, then I could most likely bypass the world of hard money and private or portfolio loans and qualify for a conventional 30 fixed with slightly higher interest rates possibly. That would definitely allow me to pick up the next property perhaps. A cash flowing market like Memphis might become within reach if I don’t happen to qualify for more than, say, $100k to get into a decent positive Cashflow position even if I go turnkey. Better if I can farm and offer well below asking.

Jay Hinrichs · Answer

30 year fixed interest loans and Private investors do not go together..   if that's what your looking for your going on a snip hunt.

there are HML that offer this at about double the current interest rates.. 8 to 10% is what you can expect to pay.

Look up Peak lending in KC they have this product.

Stephanie P. · Answer

Is this for owner occupied or non owner?  Owner occupied, there are lots of mortgage brokers out there that can do alternate documentation.  If it's non-owner for a rental property, there are numerous no income verification products available.  Portfolio lenders are what you're looking for.  @jay hinrichs is right, you aren't looking for the private money guy.

Stephanie

Nasir El Ameer · Answer

@Jay Hinrichs

Lol you are certainly correct about that.

Real estate needs its own dictionary and bible of character stories lol so everyone can see the light lol

Are there mortgage brokers for private money loans?

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