All Forum Posts by: Bob Schulte

Hi Ben,

I am not a private lender but I have worked with a few. Typically, private lenders pay anywhere from $500 to $2,000 for loan documents, depending on the complexity of the deal and the attorney’s rates. This usually covers contracts, promissory notes, deeds of trust, and other necessary legal paperwork. Costs can be on the lower end if you use more standardized templates, while custom documents tailored to specific deals tend to fall on the higher end.

Location can also play a role, with attorneys in larger cities often charging more. It’s always good to shop around or even negotiate a flat fee if you plan on doing multiple deals.

Hey Andrew!
If you're getting back into the lending game for long-term hold investors, a realistic “ideal” loan might look like this:

Rates: Somewhere around 6-8% interest, depending on the risk profile of the borrower and the property.

LTV: 70-80% LTV is solid, especially if you're aiming for lower risk.

Term: 5-10 years works for LTR investors who want stability.

Fees: Reasonable origination fee (1-2%) is expected, but avoid nickel-and-diming borrowers with hidden fees.

Prepayment: A soft prepayment penalty could be fair if paid off in the first couple of years, but after that, no penalties.

Speed: Being able to close quickly (within a couple of weeks) would be a huge plus.

In short, give investors a competitive rate, decent terms, and flexibility on prepayment, and you’re golden.

Hey Donna!

While I’m not a hard money lender myself, I’ve worked with several clients in the space. From what I’ve seen, borrowers value clear and transparent terms, speed of funding, and flexibility. Hard money deals often need to close quickly, so being upfront about fees and offering tailored loan structures can really set a lender apart.

On the lender side, the biggest challenge seems to be managing the risks. My clients often stress the importance of thoroughly assessing property values and having a solid plan in place for handling potential defaults. That said, they also tell me that the rewards are worth it, with high returns and strong relationships with repeat borrowers being common outcomes.

So, if you're exploring hard money lending, I think focusing on transparency, speed, and offering flexible loan terms will go a long way. Just be sure to have a strong risk management strategy in place!

Hey John,

Great question! Both private money loans and hard money loans are popular alternative financing options, but they’re different in key ways.

Private money loans are like borrowing from friends or family, but on a bigger scale. You're dealing with individual investors or small groups. They often offer more flexible terms and customized interest rates and repayment schedules. Plus, having a personal connection can sometimes help you get better deals.

Hard money loans, on the other hand, are usually backed by “hard assets,” typically real estate. These loans come from professional private lenders, are more structured, and have higher interest rates (8% to 15%) with shorter terms (6 months to 3 years). They're a good option if you need quick funding and have a property with significant equity.

In my experience, private loans work best when you need flexibility and have a good relationship with the lender. But if you need fast cash and have a valuable property, hard money loans could be a better fit.

Have you had any experiences with either type of loan? I'd love to hear your thoughts!

Hey David! I'm not a lender myself, but I've come across Bryt Software a bunch of times. It seems popular with short-term lenders. It's an LMS that looks really user-friendly. It offers a central hub to keep all your contacts organized and also gives automated features. Plus, they customize their quotes, so you can get a plan that fits your specific needs, whether you're a small lender or a larger operation.

Hey @Carlo D.! I'm not a lender myself, but I've come across Bryt Software a bunch of times. It seems popular with short-term lenders. It's an LMS that looks really user-friendly. It offers a central hub to keep all your contacts organized and also gives automated features. Plus, they customize their quotes, so you can get a plan that fits your specific needs, whether you're a small lender or a larger operation.

Hey Robert, love what you're doing to help sellers with financing! Here are a couple of software options that I think might be a good fit alongside those third-party services:

1.  BrytSoftware: This user-friendly platform streamlines tasks like loan payments, statements, and communication with automated workflows. It caters to various loan structures and offers cloud-based access for on-the-go management. Plans start at just $59 per month, making it an attractive option for cost-conscious sellers.
   
2. LendFoundry Loan Servicing Solution (LSS): This robust software offers features like loan tracking, repayment allocation, delinquency management, and investor reporting. Its API-based design integrates with existing loan origination systems and scales to accommodate growing portfolios.
   
3.  LoanPro Loan Servicing Software: This software boasts a borrower portal that allows borrowers to view loan details, make payments, and communicate directly with the lender. LoanPro offers strong compliance features and integrates with various accounting platforms. Pricing is typically based on loan volume.

These solutions will help with automating tasks related to complying with your state's regulations around private lending.

Your plan A of recommending a 3rd party servicer remains sound. However, BrytSoftware and LendFoundry provide a user-friendly alternative for sellers who want a bit more hands-on approach.

Hope that helps with your search for software!