All Forum Posts by: Account Closed

Oliver,

I agree you need to have confidence in your borrower but that is really only 10% of the due diligence. Most of your effort should be verifying the value of the property. The most honorable borrower cannot pay you if he does not have the money and your back up is foreclosure. Be sure you understand the property's value.

The note covers the items that need to be covered. The only thing I would add is a payable on death clause. I just did a loan in Hawaii and the attorney said it should not be added feeling that a will would cover it. He is right but with a payable on death clause one does not have to probate the loan and the payments automatically start going to your beneficiary upon your death. 

Finally, I would reference the mortgage that your note covers.

Good luck.

Thank you Greg. I'll pass your contact info along

I am a hard money lender and part of my pitch is that after the borrower has added value to the SFR he can get a loan at a lower rate from a bank and pay me off. This has indeed worked but some are wanting to put all of their properties under one loan. I understand that major banks refuse to do this because of federal laws. It strikes me a strange that a major bank would not consider this a commercial loan and be freed of all the home buyer legal requirements Is this seems like an opportunity for smaller banks or well funded private lenders? I feel like I am missing something here.

Nicoole, Persistance. I must have made 50 offers before I got a house here in Hot Springs Village. There are many investors looking for deals. Persistence is the secret. One mistake I made was working with a realtor in a large agency whose experience was selling SFR retail. If you can find a realtor that works with investors. The biggest advantage realtors who work with investors have is that they know what investors are looking for and will not waste your time by throwing everything at you to see what sticks. Secondly this sort of realtor is willing to feel out the seller to see if there is a chance for a deal without making a formal offer. This saves an unbelievable amount of time for both you and the realtor. You may have to find a small brokerage as the larger ones have very strict rules and will not allow sidebar negations.

Good luck.

Yes. The MeetUp is at 6:00. If you need more details PM me.

LaShonda, 

You have done the smartest thing a newbie can do...You joined Bigger Pockets. Listen to the podcasts. Join the flipping forum and contribute. Make every effort to get to the Central Arkansas Real Estate Investors Association (CARREIA.com). Or come to the Hot Springs MeetUp. Our next MeetUp is 6:00 next Saturday at Smokin in Style on 2278 Albert Pike in Hot Springs. Go to MeetUp.com to join. It's free.

Kathie

Kathie just sent you a message.

I second JaMarcus opinion of the future economy in Pine Bluff.  See me if you need a loan.

Welcome to Arkansas and BP. Lots to learn on BP. I especially love the podcasts. I'm in the Hot Springs area. We have a small MeetUp group here. Next meetup is April 16 at Smokin in Style at 6:00 in Hot Springs. Drop by if in the area.

Welcome RD. I used to live in Sheridan and now live in Hot Springs Village. We have an investment MeetUp group that meets the 3rd Saturday in Hot Springs. Feel free to join us this month at Smoking in Style at 6:00.