All Forum Posts by: Matthew Nixon

@Nick Alvarez

Welcome to the site. Go Titans!

@Dr. Scott Benjamin

Thanks for the introduction and welcome to the site.

Looking forward to your contributions.

@Account Closed

No need to be sorry. My intention was to answer your question of whether or not HML's will finance 100% of the project cost. If you didn't understand my answer or didn't find any value in my response, which included some ideas and tips on how to build a relationship with a hard money lender, that's quite all right.

For my own reference, which part of my post came off as overly defensive?

I'm unfamiliar with lenders who charge "initiation fees". I'd try to talk to a few other investors who have used the company you spoke of to see what their experience with them was like. Maybe talk to a couple other lenders to see if they charge that fee as well. 

Ask them if the initiation fee goes toward the down payment or the origination points and ask if it is refundable if your loan request gets denied. And if it is refundable make sure you get that in writing. 

@Tony Benacquista

@Darren S.

If this is something you are still looking for, feel free to send me over any information you have.

If not feel free to reach out for future opportunities. 

@Account Closed

The answer is it depends. LTV, rates, and terms will depend on the...

• Borrowers qualifications 
• Amount of equity in the deal 
• Exit strategy 

You shouldn't expect for a lender to commit to offering 100% financing without first showing them your track record, ability to service the debt, and credit history. And if you do come across a lender who is offering 100% without first collecting more information, it should raise a red flag.

You don't necessarily need to have a deal to establish a relationship with a hard money lender. Reach out to some HML's in your area, tell them about who you are and your past experience, and ask what their typical requirements are for getting pre-approved. Once you get pre-approved it is easier for the lender to give you an idea of what kind of terms they can offer.

Real estate is a relationship based business and having a good hard money lender on your team can add value to your business by..

• Having an advanced knowledge of the markets they lend in
• Connecting you with other business professionals
• Helping you close deals under time sensitive scenarios
• Offering free resources that can help give you an edge

With that being said not all HML's are created equal. You need to find one that is/has...

• Reliable- Someone who says what they do and does what they say
• Integrity- They set the right expectation from the beginning
• Transparent- Upfront about costs and no surprise fees after it's too late

Learning the basic terminology and knowing what a lender is looking for will increase the likelihood of getting your loan request approved. Here is a good article that @Brandon Turner wrote about investment property loans.

I've uploaded a recent market analysis report for the city of Anaheim in the file place. This is useful information for active Southern California investors or those just wanting to learn more about their local market. The report Includes key metrics that investors should find useful such as, median list price, average DOM, market action index, average $/sq. ft., etc.

We provide these reports free of charge for our existing clients. So if you've done business with us or are currently doing business with us, and would like a report for the market you are active in or would like to become active in, feel free to reach out to me. 

I will try to make more of these available to the BP community when they become available.

@Patrick Parry

We've got some mobile home parks in Alabama and Florida. I'll send you a PM.

Hi Roger. We don't do a whole lot of financing for ground up construction in FL. With that being said we will look at deals case-by-case. If you want to send me over some details I'll get back to you and let you know if it's a project we would consider. Thanks

@Roger A.

@Sarah Miller

With out knowing a whole lot about your situation I'd recommend holding off until you can build up reserves for another down payment. Leverage is great when used responsibly. If you get over-leveraged and the market takes a dip, that's when you can get in trouble. My 2 cents. Good luck.