All Forum Posts by: Jesse Goldberg

I'd have to concur with @Chris Mason, many private money/HML lender would do closer to 12% MAX. Even with minimal experience a loan in the 8-10% range is doable with many lenders. I think this may be a situation where it would be best to go with a third party so emotions don't get involved and then when you gain some capital, offer a partnership in your venture.

Best of luck!

@Francis E. Bromwell JR. We lend in Delaware and I'd be happy to go over your scenario. 

In addition, the BP marketplace is a great place to find HML lenders. I always recommend investors shop around to find the price point that works for them and the individual they can build a relationship of trust with.

@Mike G. For a bank refi, it would depend on your credit score. If you're 680+ you wouldn't have a problem typically getting a loan, but this could differ from bank to bank. It's never a bad idea to make a friend at your local bank and credit unions to see their requirements. 

@Mike G. I can talk a bit about the HML side (obviously slightly bias).

Pros are just as you mentioned, having the benefit of limited money down so that you can retain enough funds to purchase multiple properties. Typically, you'll get funding much faster than a traditional loan as well which is a benefit. HML are best if you're holding on to the properties for a relatively short period of time, as interest rates are higher.

Cons are the rates, but this is really going to be minimal if you are acquiring and selling quickly. Rates will be anywhere from 7-14% typically. In addition, you will have closing costs per property, including points anywhere from 2-6, lender fees, etc.

Of course, there is always the option to refinance a HML into a bank or credit union 6-8 months in to reduce the rates if you want to maintain the property for a longer period, which is what many REI do with HML.

Feel free to message me if you'd like specific info for the area, as we do lend in NV.

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 gives investors leverage over their cash position.

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

Father & Son Private Money Lending

@Aquasia Hilton It's not that they won't lend to new investors, though some HML and private money lenders will, but it's a low return and also an evaluation of risk.

In general, properties at $10,000 aren't of interest for lenders, as we don't see a return on our investment and stand to risk a loss and end up with a low value property. We secure our loans against real estate and generally don't cover 100% of a project, as we look for investors to show dedication to the project so we aren't the only ones risking a loss. 

It seems like your best bet would find local investors in an REIA looking to partner with you or secure a bank loan. Otherwise, I would suggest raising capital to purchase these properties with cash to flip them fast.

@Joseph M. is right on the money. Credit unions are a great place to find these smaller loans depending on your credit score, and they offer great rates and options.

Hard Money Lenders also tend to have minimums in the 75k-100k range because of the highest risk and lower benefit to the lender. That being said, there are definitely some out there that may do smaller properties, but they come at a cost with origination and broker points, closing costs, lenders fees, etc. 

That being said, if you're not eligible for a bank loan from your FICO, finding a reputable local HML in your area that will do the $50k, and you have the option of refinancing later when you are bank loan eligible.

@Devonte Blackmon It depends on the lender, some have minimum credit scores and some do not. For instance, we don't but we still use your FICO and experience to determine your interest rate. 

Some basic information to bring to your potential HML:
- Are you looking for an ARV or LTV/LTC deal? If an LTV for example, will a 65% or a 75% work best for your investment?
- When did you acquire the property?
- Is it owner-occupied?
- How many flips or investments have you done in the past 12-24 months?
- FICO Score
- Property Address (the lender will evaluate the risk of lending depending on the property location)

These are just some basics to get the evaluation started. For closing, they will typically need to verify liquidity. If you, say, have a loan for $100,000 at 10% interest and want a 1 year term, they may want to verify 4 months interest so would need to see liquidity of $3,333 to ensure you have the funds and can make the payments. 

Let me know if you have any more questions! I'm sure I have a written up scenario somewhere if you want it posted. 

@John Hickey Congratulations! It's hard and there are a ton out there with their own specifications on properties. Once you find the one that works well with you and that you know will listen openly and consider it, it's someone you will want to keep working with. It helps that you had the capital and knew what you were looking for. One of the traps many people fall into on their first HML deal is not doing due diligence, researching the options, and knowing how rates and terms affect the individual deal.

Great job and good luck on your investment.

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 institutional 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 gives investors leverage over their cash position.

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

Father & Son Private Money Lending