Need Some Advice on Questions to Ask

[Peter Roehrich]

Hi everyone, I'm a new investor looking to buy a lot and put a house on it to then sell. I identified several projects and I'm getting ready to look for funding for one of them. I'm wondering: what questions should I be asking and what do you wish you knew when you were in my position? Many thanks!

[Matthew Crivelli]

Below are some good questions to ask! I would narrow down what type of loan you want. (Hard Money, Conventional, etc.)  Find a lender who will take the time to explain the process and one that you actually like! There is always issues that can arise out of nowhere with loans. You want someone who is willing to pick up the phone to give you not only good but bad news too. I hear it all the time "They don't answer the phone!"

1. How Long will it take to close

2. Credit/cash requirements 

3. What type of loan is it? Do I need 2 years of taxes and my DTI in check?

4. What are the lenders refinancing terms if it's going to be a bridge loan

5. Origination, Lender fees

6. How does the appraisal process work? 

7. Do I need an entity?

8. If its a bridge loan, am I paying interest on the rehab money from day one or only when it's been drawn? (big one)