All Forum Posts by: Account Closed

Rebekah Martin I’d be happy to chat about lending or JV options with you. Please reach out to [email protected] and we can setup a brief call. Thank you, Jeff

Marshall Trawick Happy to discuss funding options. Please send me the property details to: [email protected]

David Hald Two items from my point of view: 1) I would encourage you to focus on finding the real estate first then worry about the financing. Financing is usually the easiest piece to figure out. Once you have a prospect (multi, SF, fix and flip) it is easier to talk about financing. Find the deal first. 2) With regards to taking a loan from your Father I wouldn’t say no, but I’d say do your homework. Define your strategy, find a property, model out the risks and plan to mitigate etc. Put this in a proposal then have a follow up conversation. Real estate investing can look glamorous from the outside, but it could be a trench warfare business too. I encourage you to get started, but be smart and operate in reality. All the best Jeff

Happy to chat about funding options.

[email protected]

Christian Wilson To answer your question directly, if you have someone fund the entire property where you are going to live that loan becomes a residential mortgage. Therefore, the lender would be subject to local, state and federal residential lending laws. Hard money lenders lend to entities where the borrower will not be living in the unit. Given your situation I would suggest you explore partnering with someone to get the required down payment, secure a low down payment loan and have them on the mortgage and deed itself. From there you can setup whatever profit share agreement. Disclosure: I am not an attorney

@Justin Griest

That should be the case (even though I am not an expert in TX RE law). 

Additionally, I would make sure you still have a mortgage contingency clause in the contract in case the funding falls through. 

@Justin Griest

Is this lender financing the entire purchase? If so and they are taking the property as collateral this sounds like a standard mortgage situation. 

If that is the case the lender will work with the title company to ensure all documentation is complete and wire funds to their escrow account to close the transaction. 

The property will be in your name as the owner, the lender will then have a first lien position on it. 

Disclosure: I am not an attorney and recommend you speak to one. I am a private/hard money lender. 

@Michael Clay

Working with your attorney you will most likely need the following:

1) Loan Agreement

2) Promissory note (if lending to a LLC)

3) Personal Guarantee (if you require one)

4) Mortgage / Deed of Trust (depending on local laws)

One important point is to ensure the property has a clear title (title company will do this, but ensure you have proof before wiring money). Closing will most likely be done through the title company, your attorney needs to draft the docs and ensure they are enforceable. 

@Michael Clay

I'll give you my opinion on your questions:

1) Since you are lending you become the mortgagee and can require both an appraisal and inspection, but you need to make this explicit. I would require a formal inspection on the property. You can usually comp properties out yourself, but you need to know if there are any major structural problems. 

2) I would consult a local attorney to ensure you are considering all applicable laws (usury, registrations etc.)

3) This is up to you. My company does not lend to anyone under 720 credit or anyone with a criminal record to start. From there the questions I would ask are: is this her first flip? How mature is her project plan and does she have sub contractors lined up? Track record is a major focus in additional to personal credentials. 

4) Depends on the property and project plan. We value each deal independently and agree on a fee structure (usually 1-5 points and 10-15% interest as a broad range).

For context one of my company's business lines is first lien notes (hard money). 

PM'd you my info if you want to chat more. 

Disclosure: This is not to be considered any legal advice or solicitation. 

@Carson Fox

Please can you send over the same on utilities. 

[email protected]