All Forum Posts by: Jacqueline Wright

what kind of financing do you need?

Chris, purchasing properties at foreclosure auctions can be challenging when it comes to using private money lenders (PMLs) due to the immediate payment requirements and the delay in receiving the deed. However, there are strategies and approaches you can explore to make this process smoother.

If your PML is hesitant to fund directly for auction purchases due to the risks, consider structuring a partnership where the PML becomes a joint venture partner. In this scenario, they are investing in the auction and can take a share of the profits rather than operating as a traditional lender. This may alleviate their concerns about the timing of the lien.

Sam, the requirement to wait before refinancing—often referred to as a "seasoning period"—is a standard practice by many lenders, even if you're only doing a rate and term refinance. 

Confirm the Terms: Reach out to your current lender and confirm whether there are any specific options to bypass this waiting period or why exactly it's in place for your particular loan.

Elizabeth, I can understand your frustration with the low appraisal and the credit union's unwillingness to reconsider. It sounds like you're in a bit of a tough spot, but here are a few options to consider: Go through the full report in detail to identify any errors, discrepancies, or inaccuracies in the comparable used. Pointing out specific mistakes may give you leverage for a revision. Ensure the appraiser accounted for things like the square footage, recent improvements, location benefits, or other factors that impact value.

Tasha, congrats on considering your first private loan! Private money lending often comes with fewer restrictions compared to traditional lending, but there are still a few costs you might incur throughout the process.

Private lenders often charge points (1-3% of the loan amount) as an upfront fee. One point equals 1% of the loan amount, so on a $100,000 loan, 2 points would be $2,000.

Bryan, it sounds like you're in a tough spot, and there are definitely some red flags here, especially with the property already being sold and the lack of communication

You mentioned the borrower has many properties across states. While that might seem reassuring, it’s still worth conducting a thorough background check to look for any other signs of financial distress or legal issues. Bankruptcy filings, liens, or other defaults on properties could signal cash flow issues.

Hey John! It sounds like you've done a great job adding value to your short-term rental (STR) and now want to pull out some of that equity. It's common to hit some hurdles with traditional lenders, especially when LTV requirements are strict or when cash flow doesn't align with standard underwriting practices.

If you're looking to refinance quickly and pull out cash, private lenders might be more flexible with both LTV and the cash-out process. This could be a good short-term solution if you're planning on refinancing again into a long-term product down the road.

Hey Mark! Welcome to the BiggerPockets community—great to have you here!

I'm currently involved in a few projects myself, primarily in the fix-and-flip and BRRRR space, and I'm always on the lookout for lending partners. With rising rates and tighter lending criteria, finding creative financing options has become a major focus for me and many others in the community. A challenge we're all facing is balancing profitability with the higher cost of borrowing.

What type of loan programs are you offering right now, and how flexible are you with structuring deals that involve short-term flips or long-term buy-and-hold strategies?

Looking forward to hearing more about what you can bring to the table and sharing insights as we navigate these tricky market conditions!

Wow, $23k for a refi is definitely steep! Based on the numbers, it sounds like the high origination fees, combined with the 70% LTV cap, are driving up the costs, especially if the lender is being conservative with their appraisal values. Your credit score (672) is a bit on the lower side, which may also be contributing to the higher interest rate and cost.

Have you looked into working with private lenders or small local portfolio lenders? These types of lenders often have more flexible criteria and can help with refi for rental properties without all the strict conventional guidelines.

Welcome to the world of flipping! New Jersey is definitely a hot market right now, and it’s great that you’re diving in. I am a Private money lender happy to help! Let's connect!