Private/Hard Money Lenders---- How have you adjusted your terms??

[Derek Dombeck]

We have had to make some recent adjustments, as everyone has, to keep working through this last month of chaos. I'd like to know how it is affecting other lenders. Have you stopped lending? Did you alter LTV's? Do you have issues getting appraisals back? Do you think ARV's should be lowered to play it safe on your loans?

[Doug Crenshaw]

Hey Derek... Sounds like you are a Hard Money guy trying to test the waters... Great place to start for sure! I would say that in this particular time we are all having to adjust... If nothing else... buy more toilet paper! Just in case! Seriously though... if you are wanting to loan money, then I would say do what no one else is doing and allow a different perspective. Maybe you go with adjustable rates, lower down, lower interest... what ever it takes to bring the deal down. Typically as investors we are looking for nothing more than to use hard money for the down payment, repairs, and closing costs for a short term rental of the money... Why not make it a longer term? Less Interest? Better terms? The worst thing you can do is to manipulate any numbers to make you the beneficiary...

An ARV is and ARV... you start playing with that... then you start losing credibility... lose that and you are out of the market!

Food for thought!