Seeking Good Private Lenders for the KC Market

[Richard Okagbue]

I'm seeking recommendations for good private money lenders for investments in the Kansas City Market, please mention who you have worked with or heard of that can make this deal happen. The deal - short term refinance for two properties valued at $60K each in Kansas City which were purchased with cash due to the competitive market, but now the cash is needed back out to be used to rehab and flip the properties. So basically, need a 12 month refinance loan for both houses.

Please note that Peak Asset Lending, which proudly advertises themselves as a good local lender, is quite picky and actually is executing a form of redlining and will not fund projects in all of the city. They have some formulas they use to determine if an area is "worthy" of their money. These two houses are not even in the inner city and are located in a suburb in the South area and yet they declined to finance them. I suppose their redlining is legal because these are investment loans and not owner occupant loans. 

It seems that many lenders just cannot help with cheaper properties as they have giant minimums, Visio Lending has a loan minimum of $100K (was $75K just as recently as last year) and LendingOne has a loan minimum of $75K for each property.

I'm hoping to get a good lender that is not redlining and also recognizes that $50K still buys a heck of a house in Kansas City and in decent areas of the city too!

[Kim Tucker]

@Richard Okagbue

You question asks, who are the good "PRIVATE LENDERS"

And for the most part there is no answer to that question. Private lenders are by definition private. I have 3 great private lenders. But I would never refer them out because one of them would only lend to me and the other two do not really want their names passed about. The network in the market place to met people, develop relationships, and then lend to those people took me several years of being business associates to develop those relation ships.

Where do you find private lenders? Usually in your own PRIVATE network. Some might be family, friends, doctors, insurance providers, attorneys, people you know from college, people you connect with in business.

Now here in KC I could give you quite the list of Hard Money Lenders. Some advertise on my reia group website, other come to the meetings regularly to let it be known that they lend. Most are very picky about what areas of town they lend in. Most look to the urban core and high rental concentration areas and avoid them because when the market tanked last time, those high flying prices of 80 to 120k in those areas went to 5 k to 10k almost overnight. And if you fail they don't really want to deal with houses in those areas.