All Forum Posts by: Ben Stoodley

@Cornelius Charles I do agree with @Jeff S. , he brings a great tip on funding that Gap. We've financed many deals where the borrower needs to find Gap funding. I've seen many borrowers ask friends and family for it (just happened last week) and also quite a few seller financing deals (depends on the deal). I would suggest networking with all your friends and family first, while attending investor networking groups to partner with experienced investors. If you can approach them WITH a good deal already in hand, it will go a long ways. Hope that helps.

-Ben

I agree. We finance many build outs. Usually, the borrower owns the land outright, but it can go both ways. Lending is becoming more competitive, so rates are dropping and LTVs are rising. However, the majority of private/hard lenders will want you to have "some skin in the game". Feel free to message me with any questions!

Hi @Tim Sughrue , I am a Private Money Lender and we give construction loans out all the time. There are two main constraints with private money; non-owner occupied and 1st position loans. If you don't live in the house and you'd be willing to REFI, we (or other private lenders) could possibly do the deal. However, you'll end up paying a lot more in interest and costs of the refi loan, in comparison to the conventional loan that I assume you currently have.

In general, if the house isn't owner occupied, this could be an option from the beginning. Use hard/private money to acquire the home and fix it up, then refi out of the more expensive hard/private loan into a conventional loan. Hope that helps!

Hey @Jack Medford

Welcome to BP! Great place, I agree with all the replies, there are a lot of us SoCal investor/lenders on the BP site willing to help. You're in a great area with a good background to help succeed. I also think you should get a job and invest on the side. That's one of the best perks of the job, let the money work for you!

Good luck!

Hey @Joseph Atkin ... welcome! SJ is a great area. We've had lots of success in the area. Let me know if you have any questions!

@Oliver B. you can certainly find cheaper rates. Experience is a great thing to have, but you have to start somewhere right?? I am a HML myself, I've seen rates as low as 8.99% and points as low as 2 pts. On average, most of our loans and loans I see go out from other lenders are in the 12-14% and 2-4 point range depending on the term. Most all HML are asset based, meaning their decision is made largely on the property, purchase price, and ARV. So if it is a good deal, they will lend. Furthermore, any good HML will want to build a relationship with you, and you should want the same. As relationships grow, the rates and points go down!