All Forum Posts by: Mark Safrin

I'm wondering whether your friend's next stop should be a chat with a lawyer or an accountant to find out if he or she has any recourse. Perhaps an legal letter of demand or the like?

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@Austin Neal I'm not sure how other escrows work but our draws need receipts and sign-offs. If the rehab comes in under budget then the rehabber does not not pocket the remainder. This is why we pay rehab in arrears at each milestone.

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Originally posted by @Jaki Gandara:

@Benjamin Hurwitz howncan I get in touch with you. I want to start investing and would like to know more

PM me or see my profile for email and telephone number.

Cheers.

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Hard Money Loan Programs

We fund both Long-term 30 years fixed and Short-term bridge loans with 100% of Rehab for up to 36 months for Investment Real Estate Purchase and Refinance.

Asset Based - NO Tax returns and NO Income verification necessary.

A) Fix and Flip, Bridge and Rehab Loans

Up to 90% of Purchase capped at 75% LTV for SFR up to 4 units
Up to 75% of Purchase for Multi Family 5+
Up to 65% of Commercial and Mixed-Use Properties
Up to 100% of Rehab costs
Typically 12-24 months
No Pre-Payment Penalties
Interest only rates between 9.5-10.89%
Close in as little as 12 business days
We allow a 2nd position
Focusing on: NY NJ PA LA TX RI FL MD IL GA

B) Long term Purchase and Refinances of SFR up to 4 units

30 years fixed
Up to 85% of Purchase capped at 80% LTV
Up to 75% on cash out Refinances
3,2,1 Pre-Payment Penalty
Start with 3-year interest only possible
Fully amortized rates between 6.5-8.25%
Close in as little as 12 business days
All States

Broker Inquiries Welcome.

Call Benjamin Hurwitz (847)-915-1158

www.RealtyCapitalFinance.com

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Originally posted by @Mikhail Fedorov:

@Bjorn Ahlblad

Thank you for your response! We have 100% financing from a hard money lender that we are working with. No interest, 0 payments for up to one year. It seems their only concern is the value of the deal. We are also developing a relationship with them, we meet in person and they give us advice into the deals we work on. Do you think it would be possible for me to be financed by them with the value of the deal being their only concern? I feel I am able to articulate this value if it comes to it.

Those partial terms seem extremely generous. What's the catch?

What are the points and fees?

What is the interst rate after the 1 year, the loan duration and the prepayment penalties?

Will your LLC own title or will it be an LLC you get kicked off the moment you don't make payment?

With those questions out of the way why not simply ask them if they will finance you?

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Originally posted by @Benjamin L.:

Can an any person receive a referral fee for a hard money loan introduction where the lender and subject property is in Texas? Or does the referrer need to have some sort of license to be eligible to receive a referral fee on a hard money loan?

Also curious about how this works in a few other states: CO, AZ, MO, OK.

As @Nickolas Covington mentioned HMLs can give a referral fee, or any other reward we feel like giving, anywhere, any time.

For most of my referrers/loan brokers, they go on the HUD to get their money when we all do. Very occasionally they prefer to remain silent partners and we work out an arrangement.

That's how we started years ago before I joined, as loan brokers. Getting kicked by all sides for that precious small slice of the deal is, I am told, no fun at all, so I try and be extra nice in demeanor to my brokers.

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Originally posted by @Jimmy O'Connor:

@Mark Safrin so just to clarify, the reason is in the case that the borrower does not actually perform the work OR the rehab is not quality enough to satisfy the out-sale. This way when the property goes into foreclosure you, at the very least, can make up your acquisition price since you are probably lending for the rehab via qualified draws. That makes more sense to me.

Headache Relieved.

Yes, That's why our draws are in arrears at each milestone. Though foreclosing and trying to sell a property that is mid-rehab is not for the faint of heart.

So rehab aside, that's the reason most of us only lend a percentage of current appraised value. It is the reason BTW that the occasional "100% Financing" offers I sometimes see mentioned around Bigger Pockets should be viewed with caution. There is always a risk mitigation angle somewhere. Ours is at least clearly visible.

Best of luck!

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Originally posted by @Wayne Brooks:

So what will you do when the hard money loan becomes due, if you can’t refinance?

If conventional lenders (Always the first choice) won't refi then you can for instance look for a 30 year fixed, fully amortized HML. It will still be at a higher interest rate than a conventional loan though not as high as a short term, interest only HML loan.

However you would need to make sure there is a HML who does 30 year loans available and that all the maths line up. Including loan closing costs, a new downpayment and any DTI ratios that can limit the total loan size.

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Originally posted by @Eldon S. Bailey:

I actually had more information in the post, but it didn't show up for some reason.

I'm trying to find my first property and was quite interested when I ran the numbers on this one. The problem is I don't have all of the down payment. So I was hoping for advice on good creative financing solutions for this situation. I considered house-hacking with an FHA, but the numbers fall apart. Should I try hard money, private money, or something else? I'm researching like crazy on my own, so any input would be greatly appreciated.

A HML is probably not an option here. Alas HMLs that I know about do not lend 100% of ARV. You would still need a hefty downpayment (Unless you can get owner financing or the like, perhaps as a second position lein?), much higher closing costs and the interst rate would be considerably higher than the conventional loan in your original post.

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A HML, if you decide to go in that direction, is not a sure thing. You would need to find a HML who will lend on ARV only, not on As-Is value.

Most, including us, lend on what the property is worth now and for some inexplicable reason, completely gutted houses don't have much As Is Value. ;)

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All Forum Posts by: Mark Safrin

Mark Safrin has started 8 posts and replied 232 times.

Post: IRS 1274 Due Upfront on Hard Money Loan

Post: Best creative financing method for new investor?

Post: Chicago community bank or private lender

Post: RCF Hard Money Loan Programs

Post: How can I work on my own deals if I am 18?

Post: Hard money loan referral fees

Post: RE Headaches #1: Lenders let "As-Is" Appraisals affect the loan??

Post: How to buy a rental with hard money? Issue I'm having

Post: [Calc Review] Help me analyze this deal

Post: Best way to obtain financing to fix a gutted home??