All Forum Posts by: Marcus Svehlak

Charline,

Where is the property located? I work for a hard money lender, if it's in California we maybe able to give you a loan for up to 5 years.

I work for a Hard Money Lender in California-- @Ken Vesely said it well;

Introduce yourself and go straight into the deal. You don't need a long story-- we just want to get to the point.

Example: If it's a cash out refinance we want to know:

 1. Where is the property is located? What's the property address?

**The closer the property is to the lender the better your odds of funding, because we'll have a better understanding of the market. Also, you'll probably get a better rate if the lender is willing to finance you because guys like us don't want to lose a good loan in our "backyard" to competition.

2. When did you buy it? What did you pay for it?

3. What do you think it's worth?

**Be honest with yourself: A lot people I talk to over-value property(s) especially if they own them-- there is a behavioral economics hypothesis called the endowment effect that states, "people ascribe more value to things merely because they own them" it's true. Also, because we're asset driven lenders we're going to assign a conservative value.

4. What is the loan amount are you looking for?

I believe the author of the article mentioned most private lenders wont extend themselves beyond 70% LTC/LTV. Our fund won't go higher than 65% and I would say unless the real estate is really good you'll need to bring at least 35% cash into the deal.

5. What is the purpose of the loan?

**This is important, you don't need a story for your loan but you do need a purpose. The purpose of the loan helps us determine how to best structure your loan, your loan term, and possibly your exit strategy (which you should have).

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Also, I can't emphasize the importance of doing your due diligence when it comes to your lending source-- find a lender who does what they say they're going to do and build rapport with them. A borrower we've built a good relationship with, who we know is accountable and honest, is much easier to make a loan for-- even if it's not something that's a great fit for us.

Hope this helps,
Marcus

Depending on the debt on your current properties you maybe able to get a blanket loan for cash out refinance on one or more of your current properties. If you go through a private lender they should be able to close a loan in less than 2 weeks. It's going to be more expensive than conventional but you can secure financing quickly and pay it off with the proceeds from your flip.

Thanks for the kind words everyone. 

Hey BiggerPockets!

My name is Marcus, I work for a California private lender, Rubicon Mortgage Fund, we offer residential and commercial bridge-loans. Ideally I would like to build relationships with active members of the forums who have experience investing in RE and are looking reliable private lender 

If you have any questions please leave a comment or PM me. I look forward to participating on the forums with all of you.

Best,
Marcus