All Forum Posts by: Bryan Hartlen

Quote from @Erik Estrada:

Hey Bryan, 

Why would you consider them if they have bad reviews already?  

Posts were 3 - 5 years old.  I would check on companies that had good posts that were that old...

Considering them for a hard money loan on a flip.  I've seen some less than favorable experiences posted 3 - 5 years ago.  Wondering if anyone has recent experience with them.  Thanks!

@Baahir Starkey, google hard money and you’ll come up with several large regional and national lenders.  Here in BP, there’s a “Find Lenders” resource that will put your opportunity in front of many smaller ones. Nationally we use Lima One,  although I would hesitate to recommend them. For us, their terms are almost always the best but, they’re almost always late to close, terms change right up to the day of closing, etc… 

Quote from @Bill J Fay:

As long as you qualify for the loan independently of the funds used as the GAP funding, most lenders shouldn't have an issue.

Some don’t but some do have terms in their notes that specify the property cannot be encumbered beyond their claim. 

When we flip we use hard money lenders and often use GAP funders to cover what the the HML doesn't. We have some HML's that are fine with us recording the GAP funders 2nd position DOT/mortgage. Lately, we've found a couple large national HML's that have good terms, very deep pockets but won't allow 2nd position loans. But, they're fine with funds coming from a JV.

I’m guessing that someone on BP has already solved this?  We’re looking for an option than not only allows us to use GAP funds with these HMLs but also provides the GAP funders with protections on their investments that would be similar to the recording of a 2nd position lien. 

And if you happen to know a lawyer that’s adept at crafting these types of structures and agreements?

Thanks in advance.

We have a bay-side waterfront property under contract in Panama City Beach. This is a new market for us. Our current insurer only writes policies for < $1M. ARV on this property will be in the $1.6M range. Anyone have a experience with insurers in this area and/or for this amount? I have an inquiry into NREIG. Thanks, Bryan.

@Tim Silvers ask your title company if they offer an enhanced policy. For us it was only a couple hundred bucks more and it protects against mechanics liens (plus many other title defects). 

@Uendy Garcia in general $30k projected profit is pretty slim.  There’s not a lot of margin for error in your assumptions. One oh-$hit during rehab can eat into that very quickly. That said, a projected $30k return may be a great opportunity if the hold time is short, if you want to keep your crew/contractor (or funds) working, if there is very little risk in the rehab, etc.  It also depends on how conservative your underwriting assumptions are.  The more conservative the underwriting the more likely you’ll exceed the $30k return.

Quote from @Felipe Lecaros:

I have. It was my first investment in AL (Jan. 2022) and they are GREAT! Complete worry-free investment in Tuscaloosa. It cash-flows well and they are very responsive. I am thinking on investing with them again soon. 

Good to hear.  How accurate did you find their prospectus projections?  At what stage did you buy: in-process rehab or one that had completed rehab and was leased?

You will have line item end quotes from multiple GC’s; so you may not have experience but you will have data. Negotiating doesn’t mean just a lower price- in many cases it’s the mitigation and allocation of risk. Asking questions will help you both understand where some of these less obvious (but real) costs are allocated. And negotiation doesn’t have to be confrontational, and there is an art behind it. I’d be happy to discuss in more detail if you like.