All Forum Posts by: Account Closed

@Andrew Michael I see what you mean about 0 money down seeming like a scam- but taking a profit on the back end actually aligns them with the investors success and allows them to cover their risk that way. Think of it this way: if a hard money lender gives you a loan, takes their down payments, points, and monthly interest, they could care less if your project is a success of a flop. They get paid either way. These lenders with a profit split on the back end actually invest in what you're doing and believe in the deal. It's more of partnership than your standard lender-investor relationship.

 It certainly is a different model, but it isn't always a scam if you do your homework on the company, I'd say keep an open mind about it!

Curious what kind of rates hard and private lenders are offering near you? 

I am in Boston area- have heard some crazy hard money terms out there recently- 25% down, 5 points, 15% interest. That's an extreme though, I think most are between 20-25% down, 2-3 Points, and 10-12% interest. Also some more creative private lending terms out there- 0% down, 2 points, 8% interest, profit split on the back end (2/3 to developer 1/3 to lender). 

If you're struggling for the down payment and faced with cash flow problems- look for 0% down lenders. They are out there! And they make it possible to take on many more deals at a time & make more money, if you're willing to think outside the box. 

@Patrick Wheeler thanks! I am really just interested in learning about the industry as a whole, and what others are doing in my area. I work for a private money lender so I am definitely interested in the financing side of REI.

@Mike Hurney That would be great. When and where is your next meeting?

Hi all, 

I am new to the Real Estate Investment world. I currently work for a private money lender in the Greater Boston Area and am looking to see what others in my area and across the country are doing in the industry. In my free time I love tennis, reading, and playing with my dog. Looking to learn and connect! 

-Julie