All Forum Posts by: Frank Y.

@Kim Martorana BP is a very nice place to ask questions, share experience and know new friends. But if you are trying to find private money lenders, I would suggest go local - go to local Real estate meetups, ask realtor who may know local private lenders.

@Trevin Nelms 1, is the lender financing you 100% of purchase price? 2, don’t you need any rehab fund? 3, try other private lenders.

@Deb Bandyopadhyay Your best option is trying to find local private money lenders through local meetups and from local realtors. Best of luck.

@Cartus Aikens Conventional lenders normally don’t lend to properties need rehab. Your best option is hard money lender or private money lenders. Good luck.

@Teofilo Tavares We are private money lenders (there is a difference between HML and PML) in Philadelphia and we lend to NJ. You can contact me directly. Thank you.

@Sequoia Austin You can use your friend as a private lender. By doing that you need have a Mortgage and Promissory Note to outline the terms, such as interest rate. You can also partner with your friend. Then you need to have JV agreement with your friend to outline each responsibility and how to share the profits (or loss). Each way has its own pros and cons. Thanks.

@Peter Morgan Yes, you can. You can do it before you sign the refinance loan documents. Good luck.

@Bonnie Low Currently the interest rate is low, but banks are very strict. However based on what you described, I think they cannot close rather than not want to close. I would look for other lenders. For the appraisal, I don’t think they will reimburse you. But you can try. Thanks.

Yes, Taxable Interest, 2b. 

Also I find the following example from IRS. So if someone has a full time job (other than real estate related) and lend money,  looks like he/she does not need to file 1098. Of course, he/she has to pay tax on every penny he/she receives as interest. Correct? 

[Not in the lending business. If you receive mortgage
interest of $600 or more in the course of your trade or
business, you are subject to the requirement to file Form
1098, even if you are not in the business of lending
money. For example, if you are a real estate developer
and you provide financing to an individual to buy a home
in your subdivision, and that home is security for the
financing, you are subject to this reporting requirement.
However, if you are a physician not engaged in any other
business and you lend money to an individual to buy your
home, you are not subject to this reporting requirement
because you did not receive the interest in the course of
your trade or business as a physician.]-from IRS