All Forum Posts by: Frank Y.

@Tim Matthews Hi, Tim: Most lenders will require you pay monthly interest only payment. For the repayment, you pay the principal when you have your property sold or refinanced. Good luck.  

@Clayton Howard Go to your local meetups, talk to realtors and title companies, most of the time they will know some private money lenders. Best of luck.

Hi BP friends, does anyone know what the standard endorsement a lender require in FL? (Like in PA, I know lender normally require endoresments of 100, 300, 900. Many thanks. 

@Timothy Hero yes, I believe there are 12 states requiring license.

@Ricardo L Knight Between 10-12%. Thanks.

@Louis D. If you want to keep a good relationship and use him money again in the future, 8-10% should be fair. I would also suggest to have some legal documents.

@Edward R. Some advices to borrowers: never pay any upfront fees to any private lenders. There are so many scams online.

@Jasmine G. I think you want to be a private money lender instead of hard money lender (there is difference between them). I am a private money lender in Philadelphia area. Some properties only need less than $100k. I agree that you start with small, make sure borrowers have skin in the game, do your due diligence well, have all loan documents. If you have any other questions, you can contact me and I will be more than happy to help. Good luck.

@Eduardo Reyes Ask about their terms (interest rate, points/fees), how soon can they close, what is their rehab draw process (is there a rehab draw fee, how soon can you get the rehab fund).

@Cale Delaney We never do 2nd position but I know some people do. You have to make sure there is enough equity in the properties to cover you and the first lien holder. You will need a mortgage and promissory note (but that will not guarantee you collect anything if something goes wrong because you are 2nd). The borrower should pay all the loan documents fees. Good luck.