All Forum Posts by: Grayson Wester

@Hassan Oukacha there are plenty out there like other's have said. A lot of investors will be hesitant to give out their private money lender's info since those relationships have been developed over time and are based on trust and a strong relational history. Meet up groups are a great place to find them. Also, start telling everyone you know what you do and the value that you have to offer someone that has capital to invest. There are private money lenders here on Bigger Pockets (legitimate and illegitimate). Whoever you choose to work with, make sure that you trust and have vetted them yourself. The lender isn't the only one that is taking a risk.

@Valerie Smith this is a great post. There's a lot of bad press regarding hard money lenders out there (and for good reason). As a hard money lender myself, this is something I have to work against on a daily basis. There are crooks in every industry, but the lending sphere is definitely one that is rife with companies that have a very short term view on developing relationships with their clients (e.g. taking advantage of a new client on the first deal to make a chunk of money, but lose a future client and get a terrible reference). However, there are also a bunch of great hard money lenders out there (large and small) that are looking to make an honest living and offer great value to their clients.

Here's my encouragement when shopping for one:

• Ask lots of questions! Good questions are a sign of a serious borrower and an honest lender recognizes that and welcomes it. If they're an honest lender they'll have nothing to hide and will break the lending details down in a way that you can understand without needing a finance degree.
• Ask for referrals from their current clients. These are the folks that will give you an honest look at how the business is run.
• Ask for referrals from experienced investors in your market. A good hard money lender is worth their weight in gold and will truly be an asset to your business as @Mark Sewell said. Investors that have vetted a hard money lender and used them more than once will be more than happy to refer them.
• Do the math! Every lender is offering some different kind of value. One might lend up to 70% ARV (anything you can fit in that amount), but charge you 12% and 3 points. Another might do 90% of purchase price (10% down payment) and 100% of rehab, but be at 10% and 2 points. There are advantages and disadvantage with every lender, but my encouragement to all my clients is to do the math and figure out how much the loan will actually cost you when all is said and done. Be informed!
• Get clarity on any fees that are charged at closing, during the loan and on the back end (when you sell or refinance). Things may seem rosy up front, but then could get way less appealing once you're in the deal.

Regarding good questions to ask, here are some basics that you need to make sure you cover with any lender you talk to:

• What are the terms? 
  • Max loan to value (LTV)?
  • Maximum loan for rehab money?
  • Maximum loan towards purchase price?
  • Interest rate - is it variable or fixed?
  • How do the points work? When are these paid?
• What is the length of the note? Are there prepayment penalties?
• Monthly payments? Interest only or principal and interest?
• If borrowing rehab money, how does the draw process work?
• Do they require appraisals or BPO's? Who pays for those?
• What fees can you expect throughout the life of the loan?

Obviously there are a multitude of questions you can ask, but these will give you a pretty good idea of what you're signing up for when vetting a hard money lender.

@John Marland I've never heard of a Luke Mark in the Houston area. I agree with @Kyle J.. Find out the name of the entity he does his loans in and then search the deed record website for deeds of trust with his name or entity listed (or the properties he says he's been the lender for).

@Alex Bradley you will find people with all different buying criteria. I've wholesaled properties here where the end buyer ended up paying 80-85% of ARV (not including repairs) (mostly out of state investors who are looking to rent and just get into the market).

I'd encourage you to price it based off 75-78% of ARV minus repairs. That's generally where you'll see most investors purchasing at in the San Antonio market. Some will pay higher, but don't bank on it. Just depends on the area.

@Rick Pozos has an awesome group. Check it out!

@Nathaniel Ignatovskiy there are hundreds of wholesalers in San Antonio. A great place to get connected with them is through the investing groups on Facebook. Search 'San Antonio real estate investing' and you'll find several. Lots of business happens in those groups.

@Hilario Luna we do our double closing transactions for our clients at Capital Title. Excel Title (Katrina White) and Old Republic (Lauran Porter) are also good too.

@Stacee Evans I have several clients who do this - they invest in Texas from California. If you're interested in the San Antonio market I can connect you with a Realtor here in town that works with investors and also offers project management services for a monthly fee. The other cool thing they have is a network of contractors they've vetted to pair with clients who are starting from scratch.

To get started you'll need:

• Realtor
• Wholesalers
• Contractors
• Insurance agent
• Title company
• Property manager

I'd be happy to introduce you to some people I know and have worked with here in the different markets in Texas if you'd like.

Regarding your friend, I would pay her on a weekly basis based on the work that's being done. If she's going to be your project manager you can either pay her a weekly or monthly fee or give her a portion of any proceeds.

Hope that helps!

@Tyler Crowell I agree with @Account Closed. Be wary of partnering with A) anyone when overseas and B) in a market you're unfamiliar with.

To answer your question though, yes you can get started with $10K. You can also get started with $0 if you have the time and the hustle to create value for others. I wouldn't use any of your money to pay for education right now. There's more free information online than you could ask for. What most people need is less info and more action. My encouragement would be to invest where you are right now. I wouldn't spend your time and energy trying to establish yourself in a market on the other side of the planet. There is opportunity everywhere - you just have to look for it. $10K will go a long way if you're looking to market for wholesale deals.

Welcome @Joshua Tucker and fellow bobcat! You're in a great location to take advantage of both ends of the I-35 corridor. Feel free to reach out if have any questions or needs in the San Antonio market.