multifamily properties in the Los Angeles area for purchase

[Bill Bruno]

I'm new to real estate investing and would like to find out more about opportunities to purchase multifamily properties in or just outside of the Los Angeles area. I am also interested in learning more about hard money loans.

[Ben Stoodley]

Hi @Bill Bruno,

I'd be happy to share a few tips on finding a HML. Here are a few points I would focus on:

• Origintion Points/Interest: pretty basic here, you can get each lenders basic interest and origination point charges very quickly to begin
• Junk Fees: most lenders charge many extra fees, around $1500-$3000 per deal on average. All these are typically unnecessary. Make sure to ask each lender for ALL fees paid at close (nothing paid up front)
• Prepayment Penalty: be sure to check and confirm there is no prepayment penalty if you were to pay the loan off early. 
• DIRECT: my most important tip would be to use Direct lenders only, not a broker. Sometimes companies will refer to themselves as direct but in reality they need to confirm with their investors before closing the loan. Be sure to ask where the money comes from, who the actual check writer is and how quickly they can close. Closing should be doable within 5 days. 

Hope that helps, good luck!

-Ben