All Forum Posts by: Anderson S.

Hi Logan,

This is a 4-unit building in the city of Chicago (near west side - Ukrainian Village).

1 retail space on the ground floor, and 3 apartments above. All occupied.

Lot purchased in 2011, built (by owner) in 2016. 

Aggregate rents of $18,000. $2886/mo for T&I. 

Current value $2.7MM. $1.425MM owed on senior loan. No other liens. 

Borrower (100% owner of LLC) wants to take cash out (either HELOC, mezzanine, or preferred equity) to build a rooftop deck, and convert the garage to a studio apartment.

ARV is estimated at $2.9MM. No improvements will affect current tenants. Rents will increase upon completion of improvements.

Let me know if this looks feasible. 

 Research is imperative! Its overwhelming but im grateful for this community and all the free resources. You guys are a wealth of knowledge 

OK here ya go.

1. Website  is it brand new  or not.
2. are the principals on the website or key staff with their contact info.
3. Are they licensed which means state MLO and NMLS registration if they are it has to be on the first page of their website by law.  Not every state requires it so they may not have one thats not a deal killer but if they are go to NMLS public look up very easy  you can see history of the company and loan agents.
4. Talk to title company and see if they have seen this company fund deals they will know without giving out any specifics.
5. Rates and terms to good to be true in todays market for instance there is no 5% money for anyone not even from banks.. rates should be 9 to 15% with 2 to 5 points plus fees.
6. UPFRONT fee's  there should be no upfront fees IE commitment fee etc those are dead give aways unless these are LARGE commercial loans up front DD fees are very common with those loans but not with fix flip and rental loans at this level.
7. Bad English written and spoken.. Not always deal killer but you can tell when they are in another country.  and by bad English I mean terms that are just not used in the industry by experienced lenders you will know when you see it.
8. There are NO national HML/PML not one company funds in all 50 states many will do the majority but NONE of them are nationwide even though many advertise that but its a little puffery by some of the legit ones .. but fake ones keep in mind NO one funds in all states.

So to sum this up.. if you get approved way to fast and easy and just send in 500.00 or 1000.00 for commitment fee = fake lender 99.5% of the time.

for context and websites to jump on now to see how real lenders look and talk go to .

Kiavi

Lima one

Lending one

Conventus

U will see the license numbers at the bottom on the first page and they will have very nice pricing matrix's on line that show rates and terms vis a vi your experience.. more experience cheaper the money.  And the Markets they serve.

I recently had a conversation with a representative from the Lending Deck company. I'm just trying to see if anyone has used them before. If so, how was your experience with their service and loan products?

I’m actively getting scammed from them right now. Something told me don’t send the money but I went against my better judgment. I won’t do that again 

Hi All

We are under contract on a 4-plex and I am shopping for Loan options. The purchase price is $415 K and we can put 20% to 25% down. Few brokers have recommended a 5 year Balloon loan but I want to explore the best option available in the market currently. 

Thanks