All Forum Posts by: Frank Y.

Sorry to hear that. Maybe this lender runs out of money. Go to your local REI meetups to build up relationships with couple private lenders. Normally private money lenders don't have unlimited money. Good luck.

Ask lender's terms. Make sure the lenders you are dealing with are legitimate, don't pay any up front fee. Good luck.

If it goes bad, the borrower lose the property and the lender take over the property.

Robert Gunby Private Monty lending is not as complicated as you think. As you said that you find the deal and talk to the PML. If the lender likes your deal and he will require information about you, your LLC, just like a bank. Then you and the lender work on the terms, such as loan mount, point, rate, and etc. Normally the lender will have loan doc prepared, such as mortgage, note. Then at closing, the lender will bring the money, and you sign the mortgage and note. You may also need rehab draws, which will be distributed after the closing. Good luck!

What is exactly your question? Do you need a private lender and want to know the pro and con? But compared to what? Investors only use private lender when they don't want to use their own money and/or when they cannot find conventional loans.

Jillian Sidoti and all: Thank you all for your inputs! Very much appreciated!

I purchased couple HUD properties and SAGE has been very slow and unresponsive. I have asked my realtor to file complaints against it. I also lent to investors who bought HUD property through SAGE, same slow and unresponsive. Before SAGE, it was Matt Martin in Philadelphia area and was much quicker.

Not sure how you get the LTV. But if you have more than 50% equity on the property, should not difficult to find private lenders who are willing to take 2nd position. Keep in mind many private lenders wouldn't take 2nd position no matter what.

Melvin List Thank you for your response!

I think different lenders have different term range, from LTV % to points and from interest rate to the length of term. Most lenders have 65 to 85 % LTV of purchase price, 2-5 point and 9-12% interest rate. Good luck!