All Forum Posts by: Frank Y.

Yes. We are small and we all have fix and flip experience.  This is why we have a lot of repeated local investors coming to us when they need the money.  We even gave our own contractors and suppliers information to borrowers. 

Yes, since myself is also an investor, I will just do the analysis as it is my own deal.  

Why do you refinance your mortgage with private money? Normally it's the other way. 

We don't know other lenders, but we do, especially for new investors.  

I was contacted by a guy from Connected Investors. The following in Italic was his first message to me.  As a private lender myself, i knew immediately it was too good to be true. But I still played with him till he asked for initiation fee.  Beware!  [Email address and phone number are prohibited, so I have to change the format to post.]  

Hello ,Good morning How are you doing today? am Larry from FinanceExpress we Offers Private, Commercial and Personal Loans with low Interest Rates within one to 20 years repayable duration period to any part of the world. We give out loans of any amount you request for. Our loans are well insured for maximum security which is our priority. INTEREST RATE: In the loan we offer, we do charge 4% Interest rate. Get back to me via mail: financeExpress at ***************, or My Cellphone: two zero one, seven four three, eight zero five three.  

Dan P. I know in many states, even the loan is illegal (for example, the lenders charged you more than the state allowed rate), it does not give you the right to NOT pay back the loan. Again, consult with an attorney.

Most private lenders don't do amortization. They require monthly interest only payment and the principal when u pay off the loan.

My advice is to talk to an local attorney and work out a deal with the lenders. Don't try to default on the lenders. Let's assume that the lenders violated the law and you win, do you really think the lenders will let you off the hook easily??

Talk to the builder the sooner the better. I would assume you have a realtor as well. May ask your realtor to talk to the builder and tell your realtor that you will use him/her again when you are ready to buy/build. If early enough, the builder may waive the penalty. I had a case we even got the $20k deposit back. Good luck.

Have an attorney to draft mortgage and promissory note. Make sure you are the 1st lien holder. Also you have to do your own due diligence on the deal yourself. Don't fund 100% on everything, your friend should have skin in the game. Always remember - business is business and friendship is friendship! Don't combine them together. Good luck!