Private Lender 1st Position for Longer Term Loan on Rental Property?

[Dustin Faeth]

Hey All!

One of my main private lenders who has been funding deals for me over the past 10+ years doing short term loans on flips and investment properties, recently came to me and asked if I had any longer term lending opportunities where he could park his cash in 1st lien position at a reasonable interest rate, after he pulled his money out of the stock market and some other investments lately.

I have used the BRRRR strategy for years now, and as most of you using this strategy have probably realized in recent months, the refi numbers aren't as pretty as they used to be now that the Fed has increased rates so much in a short period of time, and DSCR lenders and traditional banks have tightened up their lending terms and criteria as well.

I have always paid my private lender 12% interest on all the short term loans he's done for me over the years, but we recently agreed on some terms for a longer term mortgage/note for rental properties that I am needing to refinance (instead of me going to a DSCR lender or traditional bank to refi). The terms we landed on were 75% LTV, 7% interest rate, 30yr amortization, making monthly P&I payments to him, with a 5yr balloon payment due. That got me thinking that their may be an appetite from other private lenders out there who might be interested in working with me in a similar capacity.

I have several other rental properties that I have recently fully rehabbed and signed a tenant lease with, that I now need to refinance, so please send me a private message if you might be interested in being a private lender to refinance me out of my current high interest short term loan, into a longer term note with similar terms as I outlined above, and I would be happy to discuss.

Thanks!

Dustin