Can one find a low rate Private Lender on BP?

[Amy A.]

I've searched the forums and can't find an answer to a question that seems pretty simple. I have a 5 unit apartment building that is almost to the end of a 5 year ARM. I can refinance with a local bank at around 4.75% for 5 years, amortized for 20. I owe about $112,000 and have plenty of equity. I will have no problem qualifying, but would like to give the opportunity to a private lender. Is BP the appropriate place to look for a competitive private lender, or are there mostly hard money lenders here? Would my time be better spent dealing with local banks?

[Mike H.]

If you can find a private lender willing to lend money out at less than 4.75%, please let us know. I guess anything is always possible. But unless they're a relative, I don't think you're going to get better than that from a private lender.

[Bill Worsley]

I think you'll be hard-pressed to find someone to offer you better terms then what you are being offered by your bank.

[Jon Holdman]

Amy Arata, if you want to try to get a loan, please post in the Marketplace forum. That requires a Pro or Pro basic account.

That said, I don't think you'll find any private lenders here who will come close to bank terms. They may well exist. But folks here are well aware there money is worth high single digits or even double digits. Especially for a long term loan. And five years would be long term in my book.

[Will Barnard]

For buy and holds, u can't beat conventional bank financing. Since that option is open for u, go with it. Private lenders will want much better returns.

[Amy A.]

Thank you all for the helpful responses. This is what I needed to know. Now on to the pile of paperwork for the bank!

[Will Barnard]

Originally posted by Amy Arata:

Thank you all for the helpful responses. This is what I needed to know. Now on to the pile of paperwork for the bank!

No worries, unlike money, paper grows on trees! :)

Now, different scenario: Lets say you want to buy, fix, and resell - that is where private funds come into play - short term funding and although at higher interest rates, since you get out quick (at least you are suppose to), the access to funds is much more important than the cost of them (within reason of course)