All Forum Posts by: Aaron Byrne

Marshall Reddick is a common sense, 100% collateral based lender with top notch customer service and some of the fastest closing times in the industry.

A spectrum of private, non-bank loan programs are offered for individuals, entities and the like. All programs including Rental, Renovate, Bridge and New Construction are non-recourse eligible. Non-owner occupied only, business purpose loans only.

Rates, terms and pricing here: https://www.marshallreddick.com/loan-programs

Rental Programs up to 70% LTV

Bridge Programs up to 80% LTV

Renovate Programs up to 90% LTV

Marshall Reddick is a common sense, 100% collateral based lender with top notch customer service and some of the fastest closing times in the industry.

A spectrum of private, non-bank loan programs are offered for individuals, entities and the like. All programs including Rental, Renovate, Bridge and New Construction are non-recourse eligible. Non-owner occupied only, business purpose loans only.

Rates, terms and pricing here: https://www.marshallreddick.com/loan-programs

Rental Programs up to 70% LTV

Bridge Programs up to 80% LTV

Renovate Programs up to 90% LTV

Marshall Reddick is a common sense, 100% collateral based lender with top notch customer service and some of the fastest closing times in the industry.

A spectrum of private, non-bank loan programs are offered for individuals, entities and the like. All programs including Rental, Renovate, Bridge and New Construction are non-recourse eligible. Non-owner occupied only, business purpose loans only.

Rates, terms and pricing here: https://www.marshallreddick.com/loan-programs

Rental Programs up to 70% LTV

Bridge Programs up to 80% LTV

Renovate Programs up to 90% LTV

The requested items you bring up for this project that lenders are asking for--tax returns, income info, etc.--all sound like conventional qualifying materials. I would look for a hard money lender who bases their underwriting criteria more heavily on the underlying asset--the property--as opposed to you--the borrower. While there are several factors unknown, your situation seems to fit the typical hard money loan box. I would search online for those types of firms, do your research, and explore a few of them to see if the response you get is any different.

Good luck!

I agree with Robin. In our Notes, we specifically designate what must occur in the event of a mailing address change by the Note Holder. Essentially, our Notes require the request to change payment address to be made in writing and submitted to the Borrower's address as listed in the Note by first-class mail or personal delivery. 

If that is not possible, the spouse may have to gain a conservatorship from the courts to assume authority to act on her husband's behalf if he is deemed incapacitated/unfit to make his own decisions. 

In lieu of that conservatorship, perhaps you can get the wife/family to board your loan with a servicer. The servicer can collect payments and act on behalf of the lender, and also assist with obtaining the signed release of lien upon payoff. That way, it is more official and you can feel more confident about the accounting and record of payments.

Sorry to hear about the situation, and best of luck to you in figuring out the best path forward.

I am also not an attorney so please seek legal advice before taking any specific actions, but I have seen something similar done by one of my clients in the past. 

Essentially, they drafted a resolution to the LLC, which stated that: 1) on behalf of the LLC, the members are authorized to execute and deliver resolutions, 2) certify that the following changes were duly adopted and are in force, 3) remove member from LLC in accordance with your operating agreement, 4) revert ownership interest back to the remaining member (you), 5) resolve that the removed member will no longer have any ownership interest in the LLC, and 6) then add the new member (your wife) in accordance with your operating agreement, transferring whatever ownership interests you desire from the percentage that you possess. Have all the parties sign and ratify the resolution and make it official.

I cannot speak to your other questions, but hopefully this helps give some context on one way to complete the process. 

Good luck!

Another scenario in which Hard Money may prove valuable is when you are working with a borrowing entity that requires a non-recourse loan, such as a SDIRA or a Solo 401K. Conventional lenders are not able to make non-recourse loans so the Hard Money space fills the gap for investors who are seeking leverage on their tax-deferred real estate purchases.

Happy Investing!

I second Joe Homs and Tom Waddell's recommendation. Sense Financial and @Dmitriy Fomichenko do a fantastic job and many of my clients use their services. He and his team are quite knowledgeable about the space and will be very helpful in designing an investment strategy to meet your investing goals.

As to those to stay away from, I would stay away from Millennium Trust. Difficult to work with from secondhand advice.

Happy Investing! 

Just a tip if you do, be sure to do a great job setting client expectations. Property Managers remove landlords from the day-to-day aspect of their properties, so communicating the onboarding process, rent ready process, leasing process, etc. clearly and accurately goes a long way towards client satisfaction. 

Good luck!

I think you make a fair point, @LaMancha Sims. 

When you are working with a single lender, they are fully aware of your entire portfolio and may save the investor from becoming over-extended. I have seen this happen to one of my clients. He wanted to continue purchasing property with loans from us, but management noted how many vacant/under renovation projects he owned at the time and cautioned me to push pause considering the potential for being over extended. At first, my client scoffed at the idea, but went along with it since we were his preferred lender. A few months later, he came to us and shared that he was indeed overextended and had too many projects going at once. This was about 18 months ago, and with us nearly out of the hole and all projects renovated, rented and refinanced, he now thanks us for pushing pause when we did. 

At the end of the day, it is good to have a couple dedicated lenders as mentioned by @Robin Simon. Each lender may specialize in different aspects (renovation loans verses rental loans) or simply help you know if your preferred lender is keeping pace with the overall market. That said, if you work with too many lenders, it could potentially cause an investor to overextend if the lenders they are working with do not qualify income, credit, ask for a schedule of REO, etc. (hard money/private lenders).

A good rule of thumb to prevent this is to ensure the investor keeps about 4-to-1 or 5-to-1 equity in each deal. If the investor is unable to keep that amount of equity per deal, plus have the cash reserves for expenses/improvements, they need to be aware of the risk and weigh the pros and cons of potentially becoming overextended should the market shift, unexpected problems arise, etc.

Happy Investing!