All Forum Posts by: Boris Grinberg

@Engelbert Devera It was no mistake on your part. Realtors play this game all the time. You can try to get things in writing but you may struggle. 

We bought multiple properties and think that we are sophisticated player but it happens to us all the time (especially for attractively priced deals) even though we know the game.  

I read a lot of sophisticated responses on this thread and some good ideas. Practically speaking - if you have an unscrupulous realtor, which seems like you are dealing with one, all bets are off. They will use your offer and will beat the drums that demand is strong.

@Anthony Rosa Extension policy really depends on HML. I can only speak about our policies. If you are good client and paying on time, we will offer extension(s) without charge. If extension is for 3-6 months, we may ask for updated appraisal - but that's it.

Funding option path depends on the desired growth trajectory for investor. If one wants to build his/her real estate career/portfolio fast and rely on availability of financing/capital - then having good fico score is important. Borrowing via credit cards will only get you that far.

@Anthony Rosa I am hard money lender so I am biased. But we have seen many cases where investors max their credit cards. After they miss a few payments - FICO drops low and they struggle with future financing. So one need to be careful and look at a bigger picture. HML are not on borrower's credit reports, rates are between 7.5-9.5% (our company rates and no points) so if you need it for 6-12 months it is not a big deal for a profitable project.

@John Thompson THere is a lot of competition in HML right now. So someone will definitely work with you. Getting 100% financing is probably unlikely, in my humble opinion. If you don't have capital for downpayment, I would suggest JV for your first deal. Get it done, you will have some money and experience for your future deals.

@Todd Kruger

I would keep this deal and sell properties with smaller unit counts. Easier to operate/manage/oversee this type of property.

It is not easy to find good deals with 50+ units.. So why complicate it with partnerships..

My two cents.

@Jo W. 12% interest + 4points is very high, even for high LTV loans.

As a lender, it is not easy to opine/comment because I am not sure what other terms where offered to you. But for 740 Fico score our rates will be between 8.5-9.5% rate and no points for LTC up to 85%

Do you homework, take a look at other hard money lenders. 12 and 4 seems very high.

We are happy to engage. Please PM if you have other questions.

@Darren Lenick

Investing in real estate is not the same as buying primary residence. So we struggle with giving credit for OO properties. Also, executing deals for investors, like being contractor or project manager is not exactly fixnflip experience. We do give credit for contractors and for their ability to manage rehab/ground up construction. But being investor requires quite a few other things like knowing where to buy, understanding market dynamics, knowing how to balance rehab cost vs potential profitability. And one can't learn it by reading books or attending seminars.

Just a humble opinion...

@Trevor Muska - you mentioned that you may owner occupy one unit. Most Hard money lenders wouldn't finance owner occupied (or partially owner occupied) properties. We just don't have license for OO lending. So your options may be limited to conventional lending or friends/family.

@Padric Lynch, hard money lenders typically require LLC as another way of validating that this is a business loan. But as a lender, we also lend for personal name deals.

Having said that, as individual investor, I buy properties with LLC to limit my personal risk. If you have questions, feels free to reach out.

Sorry, do NOT ask for big upfront amount

@Rafael C. I would be worried about upfront activation fee of $10,000. Generally, all reputable offers or lenders do ask for big upfront amount. There are exceptions of course. Just saying..