All Forum Posts by: Kerry Boyle

A bit late to the party here, but I wanted to chime in with my experience and how my company underwrites.

Most people can find a lender where you can get around it by reducing interest in the company below 20%, or removing yourself from the company.

I believe our underwriters have a unique approach. Our applicant (person) only has to be a member of the LLC/Inc we are lending to, their ownership percentage is unimportant. We also don't care about anyone else in the LLC, unless we are using their individual assets or experience to help the deal qualify - but we don't need to pull credit if we are doing so. We just don't lend to individuals who have had a bankruptcy in the past 3 years.

example... a 1% member with a 700 credit score would be the only person underwritten (and therefore only member we pull credit). 

@Nghi Le & @Mark V.

This is a great answer. I have come into situations where the seller won't allow mortgage language on the settlement statement (Don't even ask me - I don't know why that happened and they did finally fold and allow the purchase). 

I would recommend writing something like - while the buyer may or may not use financing to buy the property, there will be no financing contingency. 

Well, talented investors can get 9% rates with hard money and rehab at or close to 100% of the whole project. You just have to weigh the risk/reward scouting out people for the flexibility that private money can allow (i.e. people that lend full project at close of loan). 

As a direct lender, I've met multiple people who go both directions. I've met someone who pays Virtual Assistants to locate potential private money leads, learned all the SEC violations and how to avoid them when asking people to fund their projects, and taught a 5 hour class to teach others how to do it. I've also met people who were able to expand to 5 projects at a time, who previously were only able to do 2 at a time with private money, once they expanded to hard money.

Hard money doesn't require a track record. Experience may drive better rates, but each 1% interest only of a $100,000 hard money loan should only cost you $500 over a 6 month period. The best vs the worst rates may be 4% different... costing you $2,000. Don't let rates scare you! Your profit margin is much better than the $1,500 difference; or $15,000 difference on a million dollar project.

@Kevin Scott if you would like an in-depth discussion on what it is like to work with a hard money lender, reach out to me. We can discuss over email or phone, I'll answer any of your questions. Alternatively, look through my post history. I answer questions all the time for new and seasoned investors.

@Amahl Miller,

Would love to take a look at your projects and give a free quote. Shoot me an email or PM!

Agree with this. Private lenders aren't typically advertising. 

Aside from that, ask them for a title company or two that they closed deals with and call the title company to confirm.

Hello @Roy Gutierrez,

I'm a direct lender. Originate, fund, and service your loan - no broker fees. Shoot me over an email and I'll take a look at your deal. We do a fair number of loans in Michigan and always like picking up more!

Thank you!

Thank you David!

8.5% interest in New Jersey? Please let me know the lender. I haven't seen anyone going that low, so be sure not to pay any big fees up front. Also ask them for two title companies they closed deals with in NJ. Call the title companies to ensure they actually closed.

@Jerry Fome  Talk to hard money lenders ahead of time. They should be able to give you a really good idea about how to make a deal work with them.

If you go into a deal knowing what numbers you need to hit, what documents you need to have, what your timelines are... you should be a lot stronger for it.

Has ANYONE ever talked to a hard money lender and had them say 'go pound sand until you have a deal?' I feel like they wouldn't get any business.