All Forum Posts by: Ann Bellamy

I've never known a private lender to provide an amortized loan, they are typically simple interest, with interest only payments made monthly, or accumulated to the end of the loan. 

And since this is presumably someone not in the business of lending, the manner in which you request the information about your loan is quite simple.  As @Rick Pozos said, you simply ask him.  But I wouldn't ask for an amortization schedule.  I'd simply ask for a breakdown of the charges and payments applied to the loan, since your accounting doesn't match his, and you'd like to reconcile now rather than later.  

Originally posted by @Christopher Brimager:

@Ann Bellamy, are you using your own funds or do you have investors that fund the deal even with your own valuation process?

Also, wouldn't your type of lending be considered private money since it would be that persons own funds that they are lending out? 

My own and one partner's money, we don't take investors as we don't need additional capital right now.

Hard money is almost always private money, meaning non-institutional.  The debate in definitions rages on and has been discussed on BP as long as there has been a BP. 

In general, I consider a private lender to be your grandma, your friends and family, and a few other people who would lend money to you for projects, but probably no one else.  You will also find "private lenders" at real estate meetings, who are people who have a finite amount of money and want to find one investor they trust to lend money to.  Then there are the people who stand up at a meeting, and say they are private lenders because it sounds better than hard money lenders.  At that point, they are advertising their lending services, so what's the difference between them and the hard money lender who uses the term hard money?

If you are defining lenders by the source of the funds, there are hard money lenders to lend their own, and hard money lenders who accept investor funds.  And some who do both.

The term hard money actually refers to a loan based on a hard asset, not where the money comes from.  I'll use both terms in my marketing to increase my SEO reach.

I tend to usually agree with @Jeff S., and his comment about individuality is on the money.  

I can close much faster than that, although I can't help you since I lend in MA and NH only.  However, the takeaway for you to is to keep looking.  
I don't order appraisals, I estimate the value I'm willing to lend on, and that happens at the very beginning of the process instead of the end.  So you know right away if the deal is going to work.  Then the longest wait is for title, a day or two, and my attorney has in-house title so she's super quick.
So call around until you find a lender small enough to do his/own appraising (he's probably using his own money, not investor money) and large enough to not run out of money.  That person can move quickly.  

Yes, absolutely. One thing to keep in mind, however. Your hard money lender may require that they see inside the property. Some REO properties are still occupied, and may not be accessible. Examples of this are occupied properties listed on online auction sites. So make sure, if the property is occupied and inaccessible, that you have checked ahead of time with your hard money lender so find out if they will need to get inside before lending.

It's not the price that I'm surprised at, Joshua.   It's that anyone would buy a property that needed rehab, and then when you completed the rehab, would be worth less than you put into it.  

@Greg Scott, I think MA is vying to beat CA in many circumstances.  Which is why I actually live in NH.  

You might want to define the part of MA you work in, as I'm assuming you may want to meet in person with them at least once:    Western MA?  South Coast?  Eastern?  
Also, real estate attorneys have specializations, it might help if you elaborated:  transactional for closings, landlord/tenant, zoning, commercial transactions, etc.  

I agree with @Greg Scott except for the $125 - it's $500 per year plus $20 for doing it online. 

I don't believe you can "move" an LLC per se, you simply register it as a foreign corporation in that new state.

Or, if you want to ditch the MA LLC altogether, you open the OH LLC, transfer the entity (talk to the lender first though) wait at least a full tax cycle because the MA LLC has to exist in order to pay taxes and effect transfers) and then shut down the MA LLC. Seems like more brain drain than it's worth. You're not saving a ton of money, but if you plan to buy more Ohio property, it might be worth it.

What is amazing, is that your closing company in Ohio didn't already require that the MA LLC be registered as a foreign corporation in OH.

@Michael Ketchen, your graphic says "real estate professionals".  To me, this implies licensed agents and brokers, as the term is commonly used.  Are you trying to target that sub-segment of the investing population, or is this event actually for all real estate investing related people, or somewhere in between?

Thanks,

Ann

Is that a typo?  You bought for 350, put 23 into it, for a total of 373 (plus closing costs) and now it's worth 360?