All Forum Posts by: Jacqueline Wright

It seems you're considering Elite Funding Group LLC for funding a project, and you're seeking feedback from others who have worked with them. Here's a general approach you can take when evaluating lenders like this one:

1. Ask for References:
If you haven't already, request references from other clients who have worked with them. This can give you an idea of their reputation and reliability.

2. Research Reviews:
While you mentioned not finding much online, try checking specialized real estate forums, Google reviews, or social media groups. Sometimes you can find firsthand experiences that don't show up immediately in basic searches.

3. Terms and Transparency:
Evaluate their loan terms carefully. Are they offering competitive rates and terms compared to other lenders in your area? Ensure you fully understand the fees, interest rates, and any potential prepayment penalties.

4. Validate their Legitimacy:
Ensure the company is properly licensed and regulated, particularly if you're working with private lenders. You can check with the Better Business Bureau (BBB), your state’s department of business oversight, or your local real estate community.

5. Small-Scale Testing:
If you're uncertain about diving into a larger project, you might want to test them with a smaller loan to see how they handle the process. This could give you more insight into their professionalism and reliability.

Would you like help with crafting your questions for them or diving deeper into any of these points?

It seems you're exploring Rehab Financial Group for your BRRR (Buy, Rehab, Rent, Refinance) strategy, which is great! Here's a quick overview of potential pros and cons, along with general advice on working with hard money lenders like them.

Pros:

• Flexible Financing Options: Rehab Financial Group often specializes in real estate investing and provides hard money loans for BRRRR deals, which may be a good match for your needs.
• Quick Funding: Hard money lenders like Rehab Financial can sometimes offer quicker access to funds compared to traditional banks, which is important for BRRRR investors looking to move fast on properties.

Cons:

• Higher Interest Rates: Hard money lenders usually charge higher interest rates than traditional financing sources. Be sure to calculate the impact this might have on your ROI.
• Fees: Be prepared for additional fees, such as origination fees, appraisal fees, and possible prepayment penalties.

Things to Consider:

1. Loan Terms: Understand the interest rate, the loan term, and any repayment penalties. Compare this to other hard money lenders to ensure you’re getting a competitive deal.
2. Reputation: Before working with any lender, it’s crucial to check reviews, reach out to other investors who’ve used them, and potentially even meet with them in person.
3. Experience with BRRRR: If possible, find out if they have experience funding BRRRR projects specifically. Some hard money lenders specialize in fix-and-flip loans, while others might have a more robust understanding of the BRRRR method.

Would you like help connecting with others who've used Rehab Financial Group or researching alternative hard money lenders?

Starting in private lending can be an exciting way to get involved in real estate while leveraging your capital. Here’s a quick guide to help you get the ball rolling:

1. Understand the Process – Before lending, make sure you have a solid grasp on the private lending process, terms, and risks. Knowing the ins and outs will help you navigate deals confidently.

2. Legal Protection – It's important to have a solid contract in place, typically a promissory note and a security agreement that outlines the loan terms, interest rates, repayment schedules, and collateral (often the property being financed). A good attorney specializing in real estate can help draft these.

3. Work with Professionals – Consider forming relationships with local appraisers, title companies, and attorneys to help with due diligence. You can also ask for referrals from other lenders or investors who have worked in the area.

4. Build a Network – To get your name out there, you can join local real estate investment groups, online forums, or platforms like BiggerPockets. Networking with real estate agents and flippers who may be looking for private financing is also key.

5. Marketing Yourself Locally – Focus on word of mouth and local networking. Consider attending real estate investor meetups and sharing your lending interest. Creating a website or social media presence highlighting your lending criteria can also help attract potential borrowers.

6. Know the Risks – Be prepared to perform thorough due diligence on any borrower or property. Always make sure the loan-to-value ratio (LTV) aligns with your risk tolerance (usually 60-70% for fix-and-flip loans).

Once you're prepared with contracts and a local network, you can start talking to borrowers and agents to find opportunities. Would you like recommendations on resources or contracts?

DSCR (Debt Service Coverage Ratio) loans are popular for real estate investors because they focus on property cash flow rather than personal income. Here's what to expect in the application process:

1. Documentation Needed – Lenders typically require lease agreements, property income statements, and a minimum DSCR (usually 1.1–1.25). Personal tax returns may not be needed.

2. Loan Terms – DSCR loans often have higher interest rates than conventional loans but offer flexibility, especially for investors with multiple properties.

3. Credit & Down Payment – While personal credit still matters, it’s less important than in traditional financing. Expect to put down 20-25%.

4. Closing Timeline – DSCR loans can close faster than conventional loans, typically in 3-6 weeks, depending on lender efficiency.

5. Tips – Work with a lender experienced in DSCR loans, ensure the property's cash flow supports debt payments, and compare lenders to get the best rate and terms.

Would you like recommendations on lenders?

Yes, you have several options to leverage your existing equity for funding:

1. Home Equity Loan (HEL) or Home Equity Line of Credit (HELOC) – You could tap into the $150,000 in equity to secure a $30,000 loan. A HELOC offers flexibility, while a HEL provides a lump sum.

2. Cash-Out Refinance – Refinancing one of your properties to pull out $30,000 in cash can be an option, though it may extend your loan term or increase your interest rate.

3. Collateralized Private Loan – Some private money lenders (PMLs) may allow you to pledge one of your properties as collateral for a short-term loan.

4. Cross-Collateralization – A lender may finance the full $160,000 purchase by using your existing properties as additional security, lowering their risk and possibly reducing your down payment.

5. Seller Financing or Creative Structures – If the seller is open to financing, you may be able to negotiate terms that reduce the need for a traditional down payment.

Your ability to qualify depends on income, credit, and lender requirements, but leveraging your equity makes your request more feasible.

Since your lender requires prior experience building and selling/refinancing a single-family residence (SFR) on your own property, you may need to adjust your approach. Here are a few options:

1. Alternative Lenders – Look for private lenders or debt funds that focus on asset-based lending rather than borrower experience. Some hard money lenders may finance new construction if the deal is strong.

2. Partner with an Experienced Builder – Bringing in a partner with a track record of SFR development could help meet lender requirements.

3. Bridge Loan to DSCR – Consider a short-term bridge loan to fund construction, then refinance with a DSCR loan once the property is completed and leased.

4. Portfolio Approach – If you plan to build more homes, some lenders may approve a construction line of credit based on your overall experience rather than just SFRs.

Since you already own the land outright, leveraging that as equity may help with funding. Try working with lenders that specialize in builder-friendly financing solutions.

With $110K, you can absolutely start private lending for fix-and-flip deals in Florida, but there are a few things to consider:

1. LTV Consideration – The 60%-70% LTV is usually based on the After-Repair Value (ARV), meaning your loan should be within that range relative to the projected value after renovations.

2. First vs. Second Lien Position – A first lien position is safer, but $110K may not always cover the full loan amount for a flip. If a borrower needs $200K+, you may need to partner with other lenders or take a second lien position, which carries more risk.

3. Smaller or Partial Deals – You could fund lower-priced flips or offer gap funding (covering down payments, rehab costs) alongside a hard money loan.

4. Risk & Due Diligence – Ensure the deal has strong equity, a solid exit strategy, and an experienced investor before funding.

While $110K is a good starting point, consider structuring deals wisely to minimize risk. If you can secure a solid first lien within your budget, it’s a great way to get started.

Total Quality Lending has received positive feedback from clients for their communication and efficiency, but it's always best to do your due diligence. Before committing, consider:

1. Check Reviews & Testimonials – Look for reviews on BiggerPockets, Google, BBB, and Trustpilot to see real investor experiences.

2. Compare Loan Terms – Ensure their rates, fees, and terms align with your investment goals by getting multiple quotes from other lenders.

3. Ask for References – Request contact info for past clients who have used them for investment loans.

4. Understand Their Process – Clarify loan requirements, turnaround time, and potential challenges before moving forward.

If everything checks out, they could be a solid option for your first investment deal.

Explore DSCR Loans (Debt Service Coverage Ratio Loans):

Unlike conventional loans, DSCR loans focus on the cash flow of the property itself rather than your personal income or DTI.

If your rental income covers the mortgage and expenses based on their ratio requirements, you may qualify.

Leverage HELOCs or Equity from Existing Properties:
Use a home equity line of credit (HELOC) or cash-out refinance on one of your current properties to fund the new purchase. This avoids needing a conventional loan altogether.
If you're targeting Detroit, reaching out to real estate investor groups or brokers familiar with local lenders might lead you to institutions or programs that are more flexible with these requirements.

 Thank you Tom! I will check into this.