All Forum Posts by: Jesse Goldberg

Upfront fees prior to application are a red flag for an illegitimate lender, or one that doesn't have your best intentions in mind. Points prior to closing are typically another red flag you should avoid. The only fees that should ever appear will be after application and evaluation of the property for BPO/Appraisal and associated fees, and then at closing the remainder of fees such as points, processing, 3rd party, etc. This can vary a bit but it's a good rule to stay safe when you search for a lender. 

We're a father and son team specializing in the financing of non-owner occupied investment properties. We provide Mortgage Brokers, Borrowers, Investors and Real Estate Agents with funding for investment property acquisition and refinancing. We use our own capital to provide business purpose loans for clients that seek to:

- Fix & Flip
- Buy & Hold
- Rate & Term
- Cash Out & Refinance
- Bridge Financing
- Foreign National

We are also able to offer:

- Commercial
- Mixed use
- Construction

With a specialized set of market competitive products, we make possible the ability to acquire multiple properties and give investors leverage over their cash position.

Call, text or email when you can, let's discuss your loan scenario.

Father & Son Lending

There are some interesting things I've seen done, but as a general rule I only write off things I can plainly claim "This benefits how I conduct business or adds value to my business". If it was your education that is relevant to your LLC, I would say unequivocally yes (depending on your state), but I don't think writing off family expenses for your business would be wise. That being said, I'd definitely talk to your CPA if you have one and ask...mine has definitely been the guy to say, "Really? Disney World? No.".

Best of luck and congrats on your 3rd flip!!

@Jimmy Thomas Great question!

No, you don't need to have the property under contract (for most lenders), but you will need the acquisition price estimate, so it's not a bad idea to speak with the seller about their listed price and what you could come in at. 

If the property is under contract, great, but either way is totally acceptable. Be sure to come to lenders with expected price, expected rehab costs, and a general idea of what you can afford to put down so you know where your boundaries are, especially starting out.

@Terrie Taylor You're off to a good start by shopping around for different lenders. It's important to find a lender you can communicate with, that can give you time frames that align with your properties, and have rates and terms that fit your criteria. It's always possible to use different lending sources for different properties, but the process becomes a lot more streamlined if you find one you can trust and work with.

I can't speak for everyone, as I only know our policies and our colleagues and partners, but proof of funding or LOI are free and go out after the application process pretty quickly. This helps both sides close more quickly and helps you secure the property quickly.

Feel free to reach out to me, as we lend in the area, and I can take a look and offer advice if possible. Even if we can't help, I'll try to point you in the right direction!

@Account Closed This is a valid question and something that can be discussed, but of course there is some discretion as we do hold investor's information private. 

I'd assume that "dirty money" probably isn't common place is the majority of private money lender's investor pools, as I would assume it would not be the quickest way to launder money...but I'm not an expert on laundering and did not grow up on enough mobster movies.  

The more important question I think you asked is "Do you know your lender?". I really believe, and built my company on this idea, that the relationship between borrower and lender is important in facilitating deals, and trust is earned, not given. I think it's safe to ask how a lender raises capital, if it's their own, how much is investor driven, etc. 

Just my two cents!

@Carrie Herrmann There are quite a few lenders that have no minimums and it's always important to shop around to find out who has the best rates and terms in addition to acceptable fees for your project. I would highly recommend looking at local lenders and using the resources on this website (marketplace) to find lenders with no minimums in your area.

Feel free to reach out if you're looking for some suggestions. We personally have a minimum so it probably wouldn't be a fit but I'm always happy to help out!

@Isiah Ferguson Private Money (Hard money if you prefer) lenders typically have terms of 6months - 6 years and can be anywhere in that range. 

The primary benefit to these loans are how quickly you can receive them, the relationship with the lender if they are going to help you along the way, and fast turn around between properties. Get in and get out quickly. As you mentioned, the rates will be higher (7%+), but if you're looking to flip the property in a short period of time this won't have much of an effect as they are interest only payments. 

If you're looking for longer terms, you can absolutely refinance (we recommend shopping banks/credit unions in your area), but ensure there are no prepayment penalties during your conversations.

Best of luck!

@Matt Pritchard

I'd be happy to look at the property if you want to send me over the scenario and address. We will only take primary position so a subordinate position would not work. Send me a message here or feel free to email me. 

@Jonathan Bukowiec Before you take the loan, ensure they don't have a prepayment penalty if you're taking out a longer (1-2 year) term loan. If so, refinance would hit you with the penalty.

Best of luck on your venture and congrats on the purchase!