All Forum Posts by: Account Closed

@Brooks Rembert

I would be interested in learning more about the opportunity.  I have many of the same questions as those asked by everyone above. Thanks!

All good advice here.  Watch out for upfront fees or application fees, ask about recent deals they have actually done, ask for references from past clients, etc. 

FWIW, I think 2 pts is pretty reasonable on a deal of this size.  Would definitely be careful as well on the app fee - if it is in fact covering third party costs you are right, those are inevitable.  However agree with what @Joel Owens said regarding jumping too quickly to an appraisal. I would want to know the deal is basically approved, subject to the appraisal, before paying for those reports.  Every lender is a bit different in how they approach that, but you definitely want to check off all the other underwriting boxes first, if you can, before incurring those costs.

Hi @Kameron Patterson-

Happy Father's Day and additional and, perhaps most importantly, thank you for your service.

One quick clarifying question - do you have some capital of your own to put into any acquisition you pursue?

Hi @Carmen Schield

What are you looking for?  Feel free to shoot me a private message. Maybe we can help.

Thanks,

Geoff

Need to find an investor who will put money into the deal, or find some money of your own.  What is the investor providing - anything beyond mentorship/guidance?  

@Gary Fischer

Good luck!

Couldn't agree more. Best to be as upfront as possible and properly present all the key information in a timely manner. A potential borrower's ability to do so is taken into consideration by lenders all the time (in addition to all the various "hard" factors that they take into account - whether the numbers make sense, creditworthiness of the borrower, etc.)

@Gary Fischer

No problem.  That's the issue - you are outside of conventional standards.  It's more expensive primarily because this deal has a different risk profile than a conventional one and non-conventional lenders have a higher cost of capital (which they pass along to you in the form of higher rates).

Generally I think the way to think about it is the profit you stand to generate from this deal far outweighs your cost of short-term capital. 

Best of luck with this deal and the next one(s).

I would call that a reasonable offer in this context.