All Forum Posts by: Frank Y.

@Kyle J.

Kyle, thank you so much for your response.  

Hi, BP friends:

Not sure if this topic has been discussed before or not. I always get questions by new private money lenders: do they have to be accredited investors to become a private money lender? I know that if you invest into syndication or crowdfunding, you will need to be an accredited investor. But what about a person lends his money directly to his friend or acquaidance for an investment property (fix & flip) and put an mortgage and note on that?  Many thanks. 

Frank

@Keith Minick Depends on how much money you have on hand. If you have enough for next property's downpayemnt after this $28k paid off, then you can pay off the $28k. If you have no more cash left after paying off the $28k, then don't pay off. Keep the money for forward properties's down payment.  Thanks. 

@John Ludwig Instead of Hard Money lenders, I would suggest you work with some local private money lenders. Private money lenders normally have more favarite terms and much easier to deal with. Good luck. 

@Ronald Mejia No credit score, no fee, no down .... and interest at 1%? If you don't want to waste your time, run away quickly. Well if you want to play with them (like me - I like to play with scammers. -:), tell them you will go with them ONLY IF there is no upfront fee. See what they will say.  

@Suzanne M. I would suggest you pay him/her a fair interest, such as between 8 to 10%. 

@Tyler Bougie Having money is only one of the factors to be a private lender. You need to know your local Real estae market, know the borrowers, then a lot of due diligence and legal documents. I would recommend talk to someone who already done that and learn from them. Also there are a lot of materials/books you can read. Good luck.   

No, you shouldn't. There are plenty lenders. 

@Craig Fitzpatrick II Hi, Craig: With the information you provided, so you are new to REI, have less money to put in, and the properties don't generate cash now. Based on these, it will be hard to get money from convertional lenders. If you are lucky, you might find local private lenders who really believe in you and believe there are a lot of equity in them. Your alternte is to either wholesale these properties or partner with someone who has experience and money to put in as downpayment. Good luck.

My 2 cents: 1. Based on what did the lender give you $5 MM line of credit?  2. $5,000 loan doc fee seems too high. 3. Be careful if they ask any upfront fees. Good luck and Merry Christmas.