All Forum Posts by: Frank Y.

Jessica Juderman-Van Brunt also the 5% from a private lender is too good to be true. Don't pay any upfront money!!

Jessica Juderman-Van Brunt It is red flag when lender ask your own bank information. Lender should wire the fund directly to title/abstract/escrow account, NOT to your account. Be alert!

Can you ask for extension for closing? This way you will have enough time to have equity loan from your own house. Good luck.

Charging interest on the rehab money at the beginning is standard for many PML/HML. The reason is that unlike big banks who have unlimited money, most PML have limited fund and they reserve that money for your rehab.

Charging interest on the rehab mone at the beginning is standard for many PML/HML. The reason is that unlike big banks,

Better have a attorney to draft mortgage and promissory note. Also make sure lender title insurance. Good luck.

Don't worry about "reporting". Make sure to have all legal documents, such as mortgage, note. The HUD settlement sheet shall reflect the borrowing. Whatever you paid as interest will be on your side when u do your tax return.

Daryl Jarrett Have you tried to fix their credit up to mid/high 600?

As Tarik Turner said, hard money lenders usually lend to non owner occupied property. Try family members, friends, or borrow from your 401k. Good luck.

Dong Yan First you need ask questions about the borrower - credit score, tax return, employment history, pay stub, bank statement. The borrower maybe a LLC, then ask LLC certificates, operating agreement, who are the members of the LLC. Second you need to ask questions about the property - purchase agreement, title binder, SOW, exit strategy. Then you decide how much you want to lend. You will need attorney to draft mortgage, promissory note. Good luck.