All Forum Posts by: Kerry Boyle

Find a lender that has lighter restrictions on who your personal guarantor needs to be. For example, if you have the property, assets, and experience to make the deal happen but not the credit, find someone who has the credit and see what is required from the lender to use that person's credit... and your everything else.

Completely possible.

"Its up to the HML whether or not they report it to credit reporting agencies. Ask them. You could negotiate that they would not report it in exchange for doing a deed in lieu rather than forcing a foreclosure. If it is reported it will have a very significant affect on your credit and will keep you from getting any mortgages for some years."

@Jon Holdman said it best.

Closing in the name of an LLC is a distinction that hard money lenders use to avoid many laws and restrictions that would be imposed if it can be seen as a consumer loan. Hard money is typically a commercial loan on investment properties, and that is the crux of where the advantages are.

It is possible (depending on the state) to still be considered a hard money lender AND close in the name of an individual, but much less likely. Of course, I can't speak for every state or municipality - but to answer your question: Yes, it is normal.

I've requested several times through submitting a ticket, but BP support staff is telling me that they have to talk to their development team about allowing this request:

When a hard money lending company is doing business in more than one state, how does that company list themselves as an "unfeatured" lender within all their states? 

Can anyone let me know if they have a solution? I don't know how it can be a development issue if there are some companies listed as unfeatured lenders in multiple states already. How are these companies doing it? 

It is easy to figure out how to become a featured lender (when you have your company name at the top of the page with an image, links, and description). I am specifically trying to find out how to add one's company to the lower, unfeatured list on multiple states - which has been done.

Thank you in advance!

Are you trying to find buyers that use hard money? Or Hard money lenders for Cali?

If the first, REIA's. If the second, go through the lenders per state on biggerpockets' website.

This doesn't provide the whole picture, if you are using a conventional mortgage you will have to wait 6+ months for cash-out. You can refinance without taking money out (potentially) earlier. You can use another portfolio or hard money lender that doesn't have any seasoning requirements to pull more cash out prior to your conventional lender's seasoning periods end.

Edit: Also, you shouldn't have trouble getting a hard money loan based on your experience. You may not get the rates that more experienced borrowers get though. From my perspective working for a hard money lender, you will probably not be able to get one loan for both properties - it would be 2 loans for each property. It is very difficult to get loans under $50k, so hopefully they are hefty rehabs with great ARVs.

@Justin Bock

Don't get too caught up in how much you are paying, because you may never get started. Compare it with what you have and how much you project to make. 

Your credit score is very good and if you have the assets to fund the down payment and interest payments, I don't see why any lender would not do a project that large unless their funds are limited. How many lenders have you talked to and what rates can you not work with?

Your ARV LTV is between 60-65%, which is bread and butter to most lenders also.

Talk with many lenders and find one that matches well with what your strong points are (credit score, potentially income, potentially reserves), that you believe you can work well with (responsive, knowledgeable), and that has some experience to complement your lack of experience. Most lenders do have experience, but it is good to ask them to elaborate on what that looks like.

@Brandon Gross

I agree with @Tarik Turner.

No time is too early to start talking to hard money lenders. Always good to have one ready when a good opportunity arises.

Are you a lender that does 100% financing on a Fix & Flip? If so, what are the Terms? We must be very clear about these things. - No, we always require at least 15% of the purchase price from the borrower.

We do require an appraisal and base the loan off of this independent analysis.

LTC is a ratio of the money the borrower puts into the total project vs the lender. 90% means the lender ultimately lended 90% of the total project at funding and the borrower had to bring 10%. 

I don't believe I can put points or interest rates down without being taken down by advertising by the mods. I believe that our rates are some of the best on the east coast though.

I wasn't totally disagreeing with you, there are lenders who want to acquire properties. I believe that lenders who decide they are going to be in the business of taking properties, they want to lend to newcomers that put at least 25% of the money into the purchase price and have an ARV of less than 65%. This leaves the lender with enough wiggle room for the possibility of legal costs and holding costs with a foreclosure. You are right that any lender who does 100% financing has to be ready to take the property as the borrowers are more likely to walk away, and they also charge more for that.

Actually, the only reason I posted was because I don't think someone should shut the door to an HML if they can still get a profitable project done for these reasons:

1. I have found people who pay more and work harder to get private money than we would have offered them. *Get a quote from a few HML at least.

2. Subject to- is ideal, but if you can only get it to work 50% of the time, then you are missing out on 50% of potential projects.

3. You should have a number of ways to acquire a property so you don't let anything fall through.

This information seems a bit dated to me. Specifically the following:

1. Lender who promises 100% financing wants to wind up with the property. - 100% financing is the most risky to the lender, as they would have to bet on you giving up the property if you fail.... to recover a failed project with no equity. The risk is, if you don't give it up and let it go to a foreclosure and they have to pay attorneys with money out of their pockets.

2. Usually they will go 65-75%.  - Many lenders go from 75-95% LTC (meaning you pay 5-25% of the entire project).

3. They also usually determine a property to be far less than what you or I would think. - Most lenders require an appraisal, which is completed by an independent appraisal company.

This sounds like you had a few bad experiences with a local lender. There are professional HML companies now that don't jerk you around.