All Forum Posts by: Boris Grinberg

@Mia Gomez as a hard money lender myself, your situation is quite typical of what we see. 3-9 months loan to buy, rehab and refinance with a conventional loan or sell the property. With HML you get fast execution and flexible terms. But it comes at a cost of 10-15% rate and 0-4pts upfront depending on LTV, location,etc. We don't lend in PA but there are plenty of lenders out there. Happy to chat if you have questions. Good luck.

@jefferey neal . It is no surprising that you struggle to find financing. Most HML, like myself, have a minimum dollar amount as the amount of underwriting work, servicing, booking, etc for 50k or for 500k loan is the same so the low balance loans are not really a profitable/scallable business. Having said that, there are lenders out there that advertise loans with a minimum of 50K so if you are trying to borrow both purchase and construction cost, you are pretty much there. It may be not be a great loan, but some HML will consider it, especially if they believe that you are a loyal client and that you will bring more business to them in a future.

Unfortunately we don't lend in St Louis so good luck.

If you want to finance construction as well, I am not sure how many people would offer financing as a second lien.  

The answer has several dimensions:

- if you don't take seller's financing how much lower can the price go

- Do you have 100k of cash to invest (10% down +80k) and what is the cost of sellers financing

- What is the cost of HML loan and how much down you would have to put for both purchase and construction

do the math, compare both options and you know the answer..

Good luck.

@Jay Hinrichs   Your point is taken. Rates at 15-18, points upfront all fine for the risk they are taking. 2,500 upfront to process the application is a lot of money, in case it doesnt work out so i hear you...

As a hard money lender, i would not offer 100% financing. For the risk I will taking, I am better off just buying that property myself. So they need to charge rates that are comparable to returns on taking the real estate risk. And for people that don't have 10-20%, it may be the the only way to get into this game.

So I think that they add just another dimension to real estate market by simply taking it one step further than the traditional HML (like me).

Having said that, I don't think buying real estate if one has no money to invest is a good idea.

Raymond, If you have 120K of cash, you can work with a sensible private lender and be able to buy properties between 350-425k. It would cost you far less than the combined rate they are charging you, unless the rate on these cards is literally at zero.

Matt, I am a direct private lender and work quite a bit with a number of short sale specialists/wholesalers. They seem to have access to deals that never go to MLS. Good luck hunting.

Hi Chad, I would love to know it too. I would have thought that title companies are quite regulated but may be not..

Hi Temie, we are a direct private lender. Our rates are 10-11% and, with sensible LTV, we don't charge points upfront or for extension. We reckon it is a sensible proposition so happy to chat and help, Cheers. Boris

I had a checking account in United Kingdom and when I applied for a conventional mortgage at a major US bank in US, they looked at at that statement from Barclays and said how come it is not in dollars. I said because they use British Pounds in UK. They had to get a manager on a call with me as they couldn't understand how come they don't report all numbers in US Dollars and the statement is in English.