All Forum Posts by: Edwin Epperson

@Kate Brown that Is truly disappointing and sad.  Thanks for spreading the word.

@Jeff S. and @Jay Hinrichs I would have to kindly disagree.  I have partners who participate in loans all the time for between 25 -50k, and they are not securing 2nd pos. Or unsecured instances.  Granted if someone is trying to do that themselves then yes, 50-60k shoot even 100K would be hard to put into a first position loan, low risk loan.  

But this is where having a  community to participate in loans with is so powerful.  Id encourage you to look at my company profile here on BP, every single one of my past loans posted were made using multiple partners at 25-35k average investments.

@Jared Decker happy to discuss with you.  I'v been in the business for 9+ yrs, over 150 loans and over $25M lent.  Not bad for a small, direct, portfolio lender.  If you would like to discuss how I operate, what my expectations are and how you  an best position yourself, lets talk.

Yeah I know. For some reason all the "Gurus" posting about BRRRR always leave this part out when discussing the strategy. But if you have solid numbers it can absolutely work out in your favor, even if having to get two different loans. I'll send you a video I made explains financing for BRRRR. It may help clarify some items for you

@Devon Preyer congrats on the successful flip and congrats on looking into exploring Private Lending.  I've sent you a PM and we should setup a time to talk.  I've been PL since 2014 while I was deployed to Afghanistan, and I've made over 150+ loans and deployed over $25M+ in the last 9+ yrs.  What makes me different is I originate, I Underwrite, I service all my loans.  I'm what you would call a direct portfolio lender.  Lets jump on a call and hopefully I can answer some questions and provide some guideance.

@Zachary N. I have been using Chase Bank for my private lending business for 8+ yrs.  Their customer service is decent, can jump on a call with an American after speaking with a call center agent, and Im able to have my business email as my Zelle account.  All my borrowers have the option of direct deposit, checks or even sending via Zelle, which I have a few that do that.  I'd assume the rental payees would work the same.

as far as running business expenses through your business name absolutely.  All utility companies can put their services in your business name, though they may qualify you personally.  I use my business line (you can purchase one from Google G-Suites for relatively inexpensive, and it might be able to recieve texts)  I use RingCentral but they are costly.  Happy to connect and answer any other B2C questions

@Niv Nissim that's great you have F&F (Friends and family) willing to make a loan to you. As Chris stated the lender (you F&F) is responsible for underlying the borrower (you) and shifting risks from themselves to the borrower (you). Your doing the right thing by seeking how to protect them, but there is more to making a risk mitigated loan than just having a Note and a recorded security instrument (Mortgage "MTG" or a Deed of Trust "DOT"). If your serious about having your F&F protected link them up with a RE Attorney who will look out for their interest, not yours. What this means is you potentially will be paying more for the use of their funds, though not necessarily in the APR. The attorney will most likely advise them to get a lenders title policy, as well the cost of the attorney will be paid by you. Also they should force you have adequate property insurance (that you have to pay for) that names them as Mortgagee/ Loss Payee, so that they are paid back their principal in case of a loss.

@Nick Radwin for clarity, Gap Funding is not something you should consider. Gap funding is typically used when the investor doesn't have the capital and wants to borrow the downpayment and even closing cost thus gaining 100% leveraged acquisition. It's no wise and from your post you don't need Gap Funding. HML and PML would be options, and as @Chris Seveney mentioned, tge DSCR product would fit your needs, though with a 700 CS you may be having to bring more than 20% down. Also dependant on the condition of the property you may not be able to get a DSCR loan. DSCR lenders do require that the asset have less than $2k differed maintenance, and be able to pass a 4pt Ins. Inspection. Alot of what if scenarios, happy to discuss if you'd like

@Charlie Austin No I do not, and I would HIGHLY, STRONGLY encourage you to not use a template off the internet either.  Contact a RE Attorney in your state and discuss with them.  Pay the $350 - $450 1 hr consulting fee it will be worth your time and effort.  Plus they will be able to handle the closing, escrow, and recording of all documents on your next deal.  Best of luck.

@Justin Landry congrats on the find and your success thus far. I grew up on a lake in KY during my childhood, lakes have a special place in my heart. I do not invest in Vermont, so I have no skin-in-the-game per se, but I would point out, that what you're requesting will need two different types of loans. DSCR loans are not available for the construction side. You must have an asset that is 100% complete or less than $2K in deferred maintenance to qualify for a DSCR purchase or refinance loan. Based on your statement, a "full demolition" represents more than $2K in deferred maintenance.

More than likely you will need a purchase and construction loan from a lender (HML or a private money lender). Once the project is completed and you start receiving reservations on the STR, you can then begin looking at qualifying for a DSCR loan. Some DSCR products don't even require any seasoning, and as soon as the property construction is complete you can immediately start the DSCR qualification process.

Just to be clear you will need two different loans, and your first loan should be focused on the purchase and construction part.  Best wishes!