All Forum Posts by: Frank Y.

Ben C. Hello, Ben. I am a private lender in East PA and we lend to central and south Jersey. We can fund 85% of purchase price and 100% of rehab. We don’t need appraisal and don’t charge any application fee or underwriting fee. Email me at “frank at privatelending.com” should you need more info. Thanks.

I am a private money lender in PA. Based on my experience, you need understand real estate market, know how to evaluate the property you are going to lend money on. Also you need to make sure the person you are lending to is reliable. Also you should get familiar with the legal side. Make your state rule on private lending. Most states don’t require license for private lending, but there are 12 states do. Make sure Title is clear and insured, make sure you are first lien holder, and make sure all loan documents in place. Good luck.

Will Glaeser Lenders want to have your income (tax return, pay stubs, w2), credit, experience, bank account, LLC operating agreement, purchase agreement, scope of work, market comps, property evaluation, exit strategy.

There are so many comments and points here. As a private lender, I would add that make sure you are the 1st lien holder. Make sure your name listed on property insurance policy as first mortgagee. Good luck.

Chris Wood You have a full time job, find s good deal, good down payment, and I would assume you have fair credit - these are the most all private money lenders want to hear. Go to your local REI meetings and you will find local private lenders. Good luck!

Not quite sure what you are looking for? Are you looking for private money lenders?

Richard Howell Go to your local REI meet ups, talk to realtors (especially those who specialize in finding properties for investors). Also make sure it requires license in your state. There are 12 states require license for private lending. Good luck.

What prevents you willing do personal guarantee if you believe the deal is so good? Most lenders are reluctant to lend money if the borrower does not want do personal guarantee. If you don’t have confidence on this deal, why shall the lender? Thanks.

The best and most efficient way is go to your local REI meet ups, talon to local lenders. They are the mist trustworthy and easy to work with.

Shannon Moyer hi, Shannon, I am a lender from Reading PA and will try to answer your questions. I think first of all you have to make sure what structure you are working out with your in-law. If you regard him as a PML, then you pay him interest (at a rate both you agree upon), and he doesn’t split any profits. You may want to make sure you have all loan documents (mortgage, promissory note) drafted. If you partner with him, i.e., he put money and you put your time, effort and knowledge to manage the rehab, then you work out a % of split profits between you two. Either way, he had to makes sure with Merrill Lynch that he is qualified for the money he is withdrawing without penalty. For tax return purposes, if you pay him interest, he needs report as interest income on his tax return. Thanks.