Funding needed soon

[Susan V.]

Here is the scenario:

Seeking $265K cash out refi or a personal loan to pay for repairs made to 3 properties in Illinois and to continue repairs to get units rent ready.  When all units rented, the income is $3,420. 

Cumulative estimated value of properties: $188K; current loan balance: $193K

I had "private lenders" who would lend at 5% interest. Seems too good to be true.  No credit checked.  Upfront 2 to 5 points for  origination; pay before funds disbursed.

Oen will go through escrow.  One will not use escrow. both lenders established in 2022.  

If they are not legitimate, I am wasting a lot of time and potentially losing my cash (cash that I need to run my businesses).  

Any ideas/thoughts/suggestions/legitimate lenders here?

[Jeff S.]

I’ve read several of your recent posts, @Susan V., requesting info on various lenders. With all due respect, you’re going to get your lunch eaten.

Looking for anonymous private/HM lenders on the web is asking for trouble. Plus, you seem to believe there are lenders out there who will lend at 5%. With risk-free 10-year treasuries at around 4% now and the prime rate at over 8%, do you actually think anyone will lend to a stranger at 5%? Not going to happen. Private/hard money loans from legitimate lenders in southern CA are in the 10%+ range now plus a few points. Compared to many other states, and even northern CA, that’s actually low (dammit).

For local money, my strong advice is to go on Meetup.com and look up several So. Cal real estate clubs. Since it appears that time is of the essence for you, it’s clear that beginning to attend these and form relationships is impractical (though you should start). Instead, call some of the club owners and ask for the contact info of the reputable lenders that attend their clubs. There will be several.

Of note, I recommend you call the owner(s) of the IEREIC real estate club in Riverside, NSDREI in San Diego, and any FIBI club. These are some of the larger real estate clubs in the area though there are others.

Last, as you’ve seen in a few of your posts, some here are totally hung up on their personal definition of a private lender and will derail your question. I just use private/hard money as a catch-all phrase to keep the conversation on track. We all know what you mean.