All Forum Posts by: Anderson S.

 I'm sorry that you had that experience. Out of curiousty how did you hear about them? 

 Hey Hitanshu, I believe we can help you with this, let's find time to connect later today.

When you're evaluating the credibility of a hard money lender, here are some key steps and considerations:

Checking Credibility:

Reputation and Reviews: Look for online reviews and testimonials. Sites like BiggerPockets, Google Reviews, and the Better Business Bureau can provide insights into the lender’s reputation.

References: Ask the lender for references from previous clients. A credible lender will be happy to provide them.

Experience: Check how long the lender has been in business and their experience with similar projects.

Red Flags:

Upfront Fees: Be cautious of lenders asking for substantial upfront fees before any services are rendered.

Lack of Transparency: If a lender is not transparent about terms, fees, or the loan process, it’s a red flag.

Unrealistic Promises: Beware of lenders promising guaranteed approvals without a proper assessment or offering terms that seem too good to be true.

Poor Communication: Difficulty in reaching the lender or getting clear answers can indicate potential issues down the line.

By conducting thorough research and due diligence, you can confidently choose a reputable hard money lender that meets your needs. If you have any more questions or need further assistance, feel free to ask!

We're here to help :)

It’s a great question, and one many investors consider. While "hard money" and "private money" are often used interchangeably, there are subtle differences:

Hard Money Loans: Typically offered by established companies or groups of investors. These loans are secured by real estate and have higher interest rates and shorter terms. They focus more on the property's value rather than the borrower's creditworthiness. Hard money loans are often used for flips due to their quick approval and funding process.

Private Money Loans: These are sourced from individual private investors or informal networks, such as friends, family, or acquaintances. The terms can be more flexible and negotiable since they are not bound by institutional lending criteria. Rates and terms vary widely based on the relationship and agreement between the lender and borrower.

Comparison:

• Interest Rates and Fees: Both can be high, but private money might offer more favorable terms if you have a good relationship with the lender.
• Approval and Flexibility: Private money can be more flexible and tailored to your needs, while hard money has standardized criteria.
• Source: Hard money comes from companies; private money comes from individuals.

Your business partner’s model has worked well, but diversifying your financing sources is smart. Both private and hard money loans have their place, and neither is inherently for "suckers." It’s about finding what fits your needs best. If you're curious about learning about hard money feel free to DM me.

Investing out of state is a smart idea, however you'll need to put in a significant amount of time in research and will need a considerable amount of trust in your contractor/team to ensure work is getting done in a timely and effective manner. First step is to identify the area you want to target!

Your decision should balance financial prudence with your long-term goals. It’s crucial to have a clear plan and build a support network, whether you choose to invest locally or out-of-state. Take your time to research and ensure your investment aligns with your financial and personal objectives.

Feel free to reach out if you have more questions or need further guidance. Best of luck on your real estate journey!

Many have! If you're looking to buy and hold, there are a few ways to go about raising capital. How do you plan on purchasing and in what area?

Hi Alessa,

It sounds like you've made a great start in real estate and have a solid foundation to build on. Here are some of my thoughts and advice based on your current situation and goals:

House Flipping vs. BRRR

House Flipping:

• Pros: Immediate cash flow, creative satisfaction from renovating properties, quick turnaround.
• Cons: High capital gains taxes, significant overhead and carrying costs, market volatility risks.

BRRR (Buy, Rehab, Rent, Refinance, Repeat):

• Pros: Long-term wealth building, rental income, potential for property appreciation, tax benefits through depreciation.
• Cons: Requires more upfront capital, managing rentals can be demanding, longer time to see returns.

DSCR Loan and Investment Properties

A DSCR (Debt Service Coverage Ratio) loan is a great option for investment properties because it focuses on the income generated by the property rather than your personal income. Here's why it might work for you:

• Duplex/Triplex Purchase: Provides multiple streams of rental income from one property, which can improve your DSCR.
• Leverage Your Network: Utilize your network of contractors and real estate professionals to manage and rehab properties efficiently.

Tapping into Home Equity

Using the $80K in home equity can be a viable option to fund your BRRR strategy. Here are some things to consider:

• Home Equity Loan/HELOC: Can provide the necessary capital for down payments and rehab costs. However, be mindful of the repayment terms and interest rates.
• Risk Management: Ensure you have a solid plan for managing the debt and contingencies for market fluctuations.

Practical Steps and Strategies

1. Market Research: Continue leveraging your knowledge of the Asheville market to find undervalued properties with high rental potential.
2. Financial Planning: Work with a financial advisor to create a detailed budget for your investment strategy, including purchase, rehab, and holding costs.
3. Networking: Engage with local real estate investment groups and continue learning from successful investors through platforms like Bigger Pockets.
4. Boot Camps and Education: Your proactive approach to education through boot camps and BP PRO is excellent. Keep building your knowledge base.
5. Property Management: Consider how you will manage the properties post-rehab. Will you self-manage or hire a property management company?

Start Small: Given your current savings, start with a smaller duplex or triplex to minimize risk.

Leverage Your Skills: Your design skills can add significant value to rehab projects, making the properties more attractive to renters.

Stay Disciplined: Stick to a strict budget and timeline for your rehabs to control costs and maximize returns.

Build a Cushion: Always have a reserve fund for unexpected expenses during rehab and rental periods.

By combining your hustle, strategic planning, and leveraging your existing network and knowledge, you can successfully transition into real estate investing and achieve financial freedom.

Best of luck, and feel free to reach out with any questions!

We're hard money lenders, and this situation sounds delicate. Let's find some time to connect.

Glad you're on this journey! There's a ton of information on BP that'll help you as you learn and grow!