All Forum Posts by: Lee Schram

Hi BP

Does anyone know how to obtain lending for an investment property outside the United States?

I am a United States citizen living in the United States and am looking to obtain financing for an investment property located in Kenya, Africa. 

Thanks. 

Hello BP Community,

Does anyone have a recommendation for a hard money or portfolio lender preferably in the Saint Louis Missouri area?

Thanks

let me be more specific. 

What I am getting at is to see if anyone made a connection and built a relationship with someone they met at a meeting that lead to finding a new private lender to finance a deal or new hard money lender that those of us in Illinois are already familiar with. 

@Kurt Bender

Financing. 

Thanks for the reply @Joe Hughis

For this post, I am interested in learning about peoples experiences for residential funding. 

I'm curious to know if anyone has been successful in finding other sources of funding for their deals by attending REI club meetings or meetups?

thanks

@Paul Khazansky

I agree that it should not be a problem, however more than 3 lenders now have told me that they won't lend on the deal because the rehab cost is more than the purchase price no matter what the figures are. So I am trying to see if others are having the same issues 

Hi bp community, 

Im running into some difficulty finding financing for some potential deals because the purchase price is lower than the rehab amount. Several hard money lenders have told me that they won't lend because of this. 

Any suggestions? Or know a lender where this is not an issue? 

Thanks 

*6 month interest payment error

20% 

$2,380

30%

$2,082

I wanted to get your thoughts on whether to use hard money or bank financing on this deal.

The estimated numbers are purchase price $69,000.  

Rehab estimate is $50,000

After repair value is $180,000

I believe this can get done in 3 months, but I am projecting 6 months to be safe

The hard money lender can lend 90% of the purchase price and 100% of the rehab amount.  The interest rate is 11% per annum and interest only payments, no pre payment penalty.  2.5 points

The math that I calculated on this is:

$62,100 loan of the purchase price

$50,000 loan on the rehab

$112,100 total loan

2.5 points= $2802.5

6 month interest payments= $6165.5

6,165.5 points +2,802.5 interest payments =$8,968 

10% of purchase price down payment=$6,900

Total amount=$15,869

Bank financing the bank wants 20-30% down and I'm estimating 5% interest rate

20% down=$23,800

30% down=$35,700

6 months interest payment= $2,975

20% down total=$26,775

30% down total=$38,675

What is the smarter play here? 

Use other people's money and pay the higher interest and points, or use my own money and go with bank financing and pay less interest?

Thanks for your advice