Seeking Good Private Lenders for the KC Market

Seeking Good Private Lenders for the KC Market

Kansas City, MO · Member since 2017 · 14 posts · 3 votes

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!

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Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes
6y

@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.

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  • Rental Property Investor · Overland Park, KS · Member since 2019 · 22 posts · 5 votes
    6y

    I am working on my first deal, a triplex in Grandview with Fountain Mortgage and they have been great! The properties are about $75k each, but I'm doing FHA loans with 3.5% down. Their interest rates were also much lower than their competitors. Let me know if you'd like me to send you their contact information.

  • Kansas City, MO · Member since 2017 · 14 posts · 3 votes
    6y

    I guess I forgot to add that these properties are titled under my LLC. I can't do FHA with them and also, I can't even do conventional - for conventional, the properties have to be titled under my name personally for at least 6 months.

  • Real Estate Agent · Blue Springs, MO · Member since 2015 · 104 posts · 49 votes
    6y

    Pm me I know of a couple that maybe able to help. I just thought i'd share to try to help you with a couple options. Hope you can get it done!

  • Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes
    6y

    @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.

  • Kansas City, MO · Member since 2017 · 14 posts · 3 votes
    6y

    @Kim Tucker, you are just playing with words. Hard money lenders are also private lenders. So yes, by private lenders I meant the full group. For example, I mentioned several companies that you may group under hard money lenders. They all fall under the broad group of private lenders as I have read here and in many other places. Your speech on your lenders being private to you only does not help me at all and is clearly not what I asked about in this thread. I also have such lenders, two of whom know you quite well! I clearly am seeking more lending. Being told a speech on networking and such is meaningless, insulting and condescending as you assume I do not already know that. It is also clearly not what I asked for here.

  • Real Estate Investor · San Francisco, CA · Member since 2014 · 104 posts · 21 votes
    6y

    @Kim Tucker, always appreciate your wisdom on your FB group.  When you speak of "urban core and high rental concentration areas", can you name a few areas?  I'm an OOS investor.  Thank you.

  • Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes
    6y

    There will be Hard Money Lenders, Private Money Lenders and people that know the Kansas City Market well at a virtual meeting tonight at MAREI should anyone want to connect with the local real estate investment community, details are on the BP calendar.

    And I do mean Hard Money Lenders that advertise that they lend as well as Private Individuals who DO NOT advertise what they do, but should you make a good connection with them, and have a solid deal would consider funding it.

    If you are looking for the "good" and "bad" areas there is a post here by @Chris Dawson that goes through zip codes from a few years ago.  Markets are changing a bit but our high concentration rental areas are still mostly unchanged.

  • Real Estate Broker · Phoenix, AZ · Member since 2013 · 749 posts · 399 votes
    6y

    @Kim Tucker I have an extensive zipcode break down and links also that I share with investors to help them understand KC. 

  • Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes
    6y

    Good to know Dan - I bet a few lenders show you at your new MAREI North Meeting next week as well.

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