Private Money in Houston, TX

[Will Ervin]

Hello BP,

Inquiring for true Private Money Lenders for a fix and flip project in Houston, TX.

I’d like to connect to provide more information about myself and the project. I do have a property executive summary presentation I can share.

Hope to connect with a “true” private money lender instead of hard money. I am trying to avoid the many fees: document fee, admin fee, attorney fee, BPO fee, underwriting fee, etc.

[Kevin Whisler]

True private money is a lot of times more expensive then alternative lending. True private money is going to cost 10-12% plus deal equity which often makes the true percentage 20-22% on your money vs alternative lending which will be around 12-14%.

Here to chat if you want some help comping a deal and putting one together. 

[Eliott Elias]

Look into Easy Street Capital @Robin Simon

[John Paul Serenas]

I would ask if they are looking for just private lenders or if they are open to hard money lending as well

If the latter, I'd say: "Feel free to message me, I'm sure I can give you a few options" or something to that affect

[Michael Kinsella]

@Will Ervin Try local real estate investor meetups.

Key data points that any lender (HML, private individual lender, or other) will want to understand about the project are:

- Property type (e.g. SFR, 2-4 unit multifamily, etc.)

- As-is value

- Purchase price

- Renovation scope and cost (what are you doing to the property and how much will it cost?)

- After-repair value

The above list is by no means exhaustive, but those are definitely some key points that lenders will want to understand.

[Will Ervin]

Thanks for the feedback. I do understand everyone's perspective. I am available to share any details you are interested in knowing.

[Mike Klarman]

It is funny that Private Money has the stigma of no fees.  They have some of the most extensive fees because this way they can charge you fees but low points.

You can expect to pay about 1,500 in closing cost fees: Legal, processing, underwriting.

To get in a good loan, you would need some experience in real estate flipping/holding preferably in Houston and be 100k liquid and have credit 700+.

You fill those three needs and I can help you for sure.

[Tony Severance]

@Will Ervin  We are a Texas based lender with a program that is exactly what you are asking for.  I will DM you. 

[Michael Myers]

Just throwing it out there for anyone searching here in the future... I do "real" private lending in the Houston area. I take a fairly personal approach and like to build a relationship with my borrowers, but the fees aren't ridiculous and the interest rates are reasonable 😊 reach out if you want to discuss.