All Forum Posts by: Marcus Svehlak

Hey BP Community, I just wanted to test the waters see if there are any local meetups or groups you attend. I'm looking to expand my network with investors and commercial and residential agents and brokers.

@Stephen Mills welcome Stephen!

Look in to hard money bridge loan programs in your area-- you should be able to find one with no pre pay. Which would make refinancing an easy exit strategy once your business partner's income issue is resolved.

Jesse,

As others have stated you will probably need asset based lending-- a Hard Money Lender or private guys. I'm not in your area but if you have any questions I may be able to help. Shouldn't be to hard to find a lender up in the Washington area-- I know a couple. As far as rates go it depends on the value of your house, how much money you want to borrow, and the term of the loan (if it's owner occupied residential you probably might not be able to get a loan for more than a year-- which is probably ok for your purposes). Try and find a lender close to you-- you'll probably get a better deal from a local guy.

Best

 Very sound advice from at Zoran

Hi @Tammy Vitale

Hard money lenders will issue LOIs (Letters of Intent) to fund specific properties. If you plan on purchasing or are in contract to purchase a property, based on the property type, purchase price, the cash you plan on bringing into the deal, and the loan term you want, the lender should be able to tell you "Yes, I'm interested" or "No, this is not a good fit for me." If it's a yes issuing an LOI should take no longer than an hour.

Regarding your question: "Should I talk to a hard money lender before making an offer to purchase?", it's up to you-- but you need to make sure you are within the lending guidelines of the lender you are approaching for your deal. Last week I closed a loan on the purchase of a $2.6M property-- the borrower who purchased the property approached us already in contract.

Hard Money Lenders can move much more expediently because we don't have the same hurdles as conventional lenders.

Hope this helps, best of luck. 

@Mike Hall some private lenders may be willing to debt service your deals if that interests you. Private Lenders don't like debt servicing but I would look into it. Best of Luck

Great @Lisa Arlt Escoto

Borrowers should never pay a fee before seeing an LOI. I work for a private lender in California, we call our LOIs "Letters of Intent" However, most lenders will require a due diligence fee after an LOI is issued. I know you talked about this in your article but for people who haven't read it or might have questions:

The due diligence fee covers our site visit, pulling preliminary title reports, and all the effort it takes to get the ball rolling. It takes a lot of work to put a deal together and we want to make sure that our efforts aren't wasted if a borrower backs out, or a deal falls apart.

Best, Marcus

A lot of times foreign nationals can't get conventional loans. I actually just closed a loan with an Australian foreign national last month for Rehab purchases. I'm not sure what your question is. There are a lot of advantages to using lenders like us:

Fast financing, we can close in less than 10 days
Flexible loan structuring
We aren't concerned with credit

If you're an investor in California feel free to PM me.

I'm a little confused about what you're proposing-- are you considering getting a HELOC with your Father vs. getting a hard money loan from someone who is thinking about becoming a lender? Or are you thinking about a HELOC vs. a friends and family loan from from your Father?

Considering a loan from someone who is "having his Dad become a hard money lender" would be ill advised. But you won't get a better rate than a friends and family loan. But if you're decision is between a HELOC and a hard money loan it depends on what's a better fit for you.  If you're considering hard money PM me, I work for a Hard Money Lender in the SF Bay Area. We may or may not be able help, but I would be happy to take a look.