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All Forum Posts by: Marty Johnston

Marty Johnston has started 41 posts and replied 497 times.

Post: Commercial Property Pre-Foreclosure Bridge (Foreclosure Buyout Lender)

Marty Johnston
Pro Member
Posted
  • Lender
  • Wauwatosa, WI
  • Posts 565
  • Votes 200

Ron,

Would love to assist, I have a number of options we can discuss. sending you a DM to discuss further.

Post: Hard Money Lender for Illinois

Marty Johnston
Pro Member
Posted
  • Lender
  • Wauwatosa, WI
  • Posts 565
  • Votes 200

@Ryan Rippinger you've probably locked this one up by now with some other options here! There are some hard money lenders in the IL market (including Cook County) who have no minimum loan amounts and will lend on residential properties. No credit checks, no appraisals (in most cases) as they do an in house valuation. DM me if curious for more info and future reference!

Post: Has anyone seen no fico requirement for funding?

Marty Johnston
Pro Member
Posted
  • Lender
  • Wauwatosa, WI
  • Posts 565
  • Votes 200

@Susan V. there are hard money lenders who won't consider credit at all, however, they may still do a background check / LexisNexis search just to ensure there are no federal tax liabilities, significant criminal charges including writing bad checks, or other monetary concerns from that standpoint. Pricing won't be 'better' though - expected mid double-digit interest rates and high fees - another traditional hard money loan. It will help you get the funds to your contractors however!

Post: GAP lender needed... Texas City

Marty Johnston
Pro Member
Posted
  • Lender
  • Wauwatosa, WI
  • Posts 565
  • Votes 200

@Branden Jordan there are a number of ways to get this done in a weeks' time depending on your situation.

1. Another private investor, willing to bring equity in exchange for ____ (fill in your agreed upon terms). (3-15 days)

2. Unsecured debt, either to you personally, another partner to the project etc. - based on personal Income, Credit, DTI, etc (1-8 days)

3. Quick close leveraging a 1st lien against OTHER real estate you on either a cash out refinance, or, if you have equity, you could potentially obtain a 2nd lien against cash flowing real estate usually capped to a max 75% CLTV (1st + 2nd liens can't exceed 75% LTV combined) (5-30 days)

4. An advance against your cash flow from other existing real estate. Not a real estate loan meaning no appraisals, no liens against a property, does not show on personal credit, business credit, against any property, etc. You simply obtain funding based on your net cash flow after debt service and 'pledge' that cash flow for a period of time (up to 5 years, no pre-payment penalty), for a cash advance. Rates around 12-13% on average. No upfront fees, all costs paid from proceeds. (2-5 days).

5. 2nd lien against the subject property from an outside lender. << Most difficult to obtain IMO on smaller amounts. Others may have a different opinion, but outside of a seller carry back up to 90% CLTV (still require some skin in the game, unless you go true hard money) 2nd liens on real estate for purchase transactions in the manner you're seeking are very difficult to get a loan against, whether it be a secondary market lender (private equity fund, balance sheet lender, family office, etc), and usually are seeking larger transcations ($1-3MM +) in this space, and are still capped at a max 75-80% CLTV (still wanting skin in the game).

# 4 usually requires more explanation as its newer to the market (DM me if interested in discussing these options further), but all 1-4 appear to be potential options for you based on the limited details. 

Good luck!

Post: Commercial loan needed to buy and fix up apartment building

Marty Johnston
Pro Member
Posted
  • Lender
  • Wauwatosa, WI
  • Posts 565
  • Votes 200

Hi Jemma,

What is the purchase price and the numbers for the deal? (Purchase price, rehab budget, ARV). This will help us better point you in the right direction as well. Memphis is a desirable market to many lenders too so shouldn't have an issue there!

Post: Funding Options on brand new 7 units in good market

Marty Johnston
Pro Member
Posted
  • Lender
  • Wauwatosa, WI
  • Posts 565
  • Votes 200

@Ty Schuman there are a number of ways to structure the financing here with different Lenders depending on what you mean by "Credit isn't the greatest", where is your credit currently? You're in a good price point where non-bank lenders and family offices will be interested - it sounds like you have options here! Sending you a DM.

Post: Renovation Loans in Detroit

Marty Johnston
Pro Member
Posted
  • Lender
  • Wauwatosa, WI
  • Posts 565
  • Votes 200
Quote from @Sheree Dyer:
Quote from @Marty Johnston:

@Vadim F. yes it is! If there ARV is more than 65% of the total loan amount, you could get a rehab loan for financing. Although loan amounts this small are going to be very limited to hard money lenders. Expect up to 15% on the rate and 5+ pts to the lender (you often run into minimum fees for example in this price point). This assumes you're looking at this as an investment property. If you are lookign to occupy the property as a primary, then you'd need to look at the conventional (Fannie HomeStlye Reno loan for example) or FHA (203k loan for example).

As for the takeout, again so long as the ARV is strong enough to support it, you have credit and income to qualify (if you go the Conventional DTI route as opposed to DSCR), you should be able to refinance into a long-term loan no problem.

Feel free to DM me if you'd like to chat more on this!


 Good Morning Marty!  I am in a similar situation and could use some guidance.  Can we chat?  


 Absolutely! Sending you a DM now.

Post: LOOKING FOR COMMERCIAL LENDER

Marty Johnston
Pro Member
Posted
  • Lender
  • Wauwatosa, WI
  • Posts 565
  • Votes 200
Quote from @Louisa Davis:

Hello, I'm looking for a commercial lender for a multifamily property in Pennsylvania. The property is half vacant currently, and will need renovation. Loan balance between $1M-$2M. Any recommendations? Thank you!


 Louisa,

Happy Easter! I'll echo the others here, best pricing will come from local banks and credit unions. If they're all a "No", secondary market is gonna be your best bet! These are non-bank lenders, some are funds, family offices, REITS, Trusts, or syndications lending against real estate. Average is going to be 30-20% equity (sounds like this is a refi possibly based on your reference to loan balance of $1M-$2M? But this wasn't quite clear from your OP, can you clarify?) + reserves for rehab. Many lenders will finance 100% of the reno in draws, but may want to see 20% of the rehab budget in post-close reserves to begin the rehab. Rates are high currently, floating from SOFR + 300-700  or PRIME + 200 - 500 with a lot of these lenders (10% - 13%)

Happy to chat on this too - DM me if interested!

Post: Developer/Builder looking for capital...Great returns

Marty Johnston
Pro Member
Posted
  • Lender
  • Wauwatosa, WI
  • Posts 565
  • Votes 200
Quote from @Kevin Melrath:

Thanks Marty. Looking more for a loan not equity. Have 2 lots under contract and looking to build a single family on each. New construction comps are $1 million to $1.3 million in area. Have plans for both houses. Just need to get building permits. Looking for around $300k-$400k. Let me know if this is something you could be interested in. 
Kevin


 Okay got it! Yes would love to help. Sending you a DM.

Post: Developer/Builder looking for capital...Great returns

Marty Johnston
Pro Member
Posted
  • Lender
  • Wauwatosa, WI
  • Posts 565
  • Votes 200

@Kevin Melrath to be clear are you seeking an equity partner? Or a senior lender? Can you provide more details on what you're requesting?

Thank you!