All Forum Posts by: Ann Bellamy

Originally posted by @Jay Hinrichs:

A lot of this depends on where the HML gets their funds to lend..

those that broker private folks money are still working but very cautiously from what i can see.

As well as those of us who lend our own money.

Wish I could vote for @Jeff S. more than once.  We are still taking calls, but turning down most deals, as so many borrowers are using current comps to predict the future.  I have approved 1 deal, but it was at 24% of purchase price (from 2017).  When I asked him why he chose to work with me, he answered that I was the only one who returned his call.  While I'd like to think it was my sterling reputation, clearly most HM lenders in my area are shuttered.  I only know 2 others taking calls at this time.  

There are many kinds of hard money companies and individual lenders, there are no "standard" HMLs.  The key, in my opinion, is to get references from other LOCAL (to the property) investors who have used them. 

For example, some national lenders based on the west coast are horrified that most of the housing stock in the northeast is well over 50 years old, and in many cases can be 200 years old or more.   If your lender finds that out at the last minute, you could lose your funding.  This is just one example. 

Every lender won't have an appetite for what you are doing, so talk to as many as you can.  The ability to follow through and deliver what they say they can is in many cases far more important than the rate.  References from other borrowers will tell you this.  And as you work through kinks in the deal, the integrity of the people you are dealing with may also become critical, especially in a crisis.  Like now. 

I have a list of questions to ask a hard money lender, and I"m happy to email it to people who DM me with their email address.  No charge.  I don't do business outside of MA and NH, so I'm not harvesting your email.  

Rich, this issue is specific to a MA legal case, and since the property is in MA, you should be consulting with a MA real estate attorney.  All these responses, while well meaning, don't relate to specific legal precedents in MA and so should not be your basis for making a decision. 

Also, you can get title insurance with an exception for the previous owner, but what good is that?  I know someone who offered 50K cash for keys to a previous owner still in residence in a foreclosed property in MA.  He refused.  It took over 3 years to legally remove the previous owner.  It was a big thread here on BP until the original poster had to have it removed because the the guy being evicted was reading the post and using it in court as a defense.  You can't make this sh*t up.  

Again, this is a MA specific case.  Call a MA real estate attorney and ask them the same question.  Not random helpful people who don't work with MA real estate.

Thanks for all the kinds words, all!

Aw, golly gee, @brian lucier!  Thanks for the kind words, back at you!  And to think we didn't even pay each other for this. 😁

I was a co-founder of BostonAREIA, and know exactly what the bad blood was.  And staying above the fray, I suggest you consider Black Diamond Real Estate Investors when we resume our meetings.  We are currently looking at doing an online April meeting about "Real Estate Investing during Covid-19."   Input from multiple sources on stuff from tenants to getting financing to SBA loans to evictions to foreclosures to short term rentals.....everything is changed.  it may take us several meetings.

@George Tiglianidis, glad it was helpful.  In a year or two, you can tell me I was wrong, and that you shouldn't have taken the lower offer.  If that turns out to be the case, I will be THRILLED to have been wrong, because that means it wasn't as bad as I (and many others) think it will be.  Good luck.

From 770K to 695K is far from 50%, and where the Boston area won't LIKELY drop that much, it most certainly will drop.  Lack of financing means lack of buyers.  Lack of income means lack of buyers.  That was about a 10% reduction, and giving the state of the market uncertainty, I would feel fortunate if I were you that it was only a 10% reduction.  I would grab what I could and be happy you got anything.  They can also change their offer at the last minute, rescind the offer altogether, or make the loan and then call it due or freeze it shortly thereafter.  

@Dennis Nikolaev, prices were dropping in every city.  Mine was probably worse than some and not as bad as others.  I was not over leveraged, as I had put 20% down and had paid it down significantly.  It was done by city, not by individual.  So the facts that my credit score was over 800 and I had plenty of reserves in their bank were not taken into consideration.  That's when I learned to move my assets to another bank (not the one where I had my mortgage), because there was no consideration given to my individual situation.  Protect yourself, because the bank is not there to help you.