All Forum Posts by: Nigel Prentice

Sure thing, @Lisa Eckman!

@Account Closed Thank you for the quick answer!

@Ben F. What is my platform? I'm not sure what that means. And my area is typically Texas- Austin and Houston specifically.

@Lisa Eckman My terms depend on the deal, location, duration, and most importantly on the asset we are funding.  My range is 10-14% int rate, 2-4% points, and $20k - $70k for immediate closing. I can go higher, but will need more time to close. As a result, I've been doing deals in small markets, or land acquisition, or some small specific part of a rehab. Do you have a specific deal in mind?

I've recently begun lending my personal capital to fund small deals here in Texas. Can I directly announce my availability here on BiggerPockets, or is that frowned upon? If allowed, where do I post it, just in a standard forum post?

@Daniel J Dominguez I'm open to lending on deals and doing my own.

@Andrew Bang Wow.  it looks like you just wrote the book on hard money lending. It doesn't get any clearer than that! Thanks so much for taking the time to share your experience and thoughts.

@Odie Ayaga That's what I thought, which is why I was surprised to hear about that fee.

I appreciate the offer @Noah Swank. Very cool business model!  And it certainly would be interesting to chat with someone of your experience. I have tons of years managing divisions at fortune 500 companies (and a few startups), but I'm new to real estate financing. I'll reach out directly and see if we can setup a short call, if you don't mind.

@Odie Ayaga Yes, I will be investing with the builder again. He presented me with two deals the week after this one closed, I just turned them down a few days ago. A few of the terms he was getting from his wholesaler were affecting the lending profile for me, which created too much risk. But yes, I would like to expand to others, and yes I hope to continue to invest. 

@Odie Ayaga Success in real estate is figuring out "how to solve the other person's problems." #instantclassic #thatsajewel

@Jeff Cichocki Great point about being the borrower's financial partner. This makes you essential to their success, which sets up a great foundation for a meaningful relationship. And wow, what a variance in rates. I'm glad I asked my original question because I'm seeing first hand how market dependent these things are. The fact that rates are market dependent is of course not new to me, but just how big the variances are is interesting. Thanks. 

@James Williams Yeah man I agree with you. Honestly this has gotten way more traffic than I expected, and I'm here for that since I've gotten more than I asked for.

@Darrin Taylor Ok cool. Good to know.

@Bryan Devitt Now that's interesting. A $200 fee for every draw check. That feels like the lender is sneaking in a little extra revenue when the client needs their services the most. I guess the justification is that there is some administrative work (review permits, inspect the site, rerun credit) that the company must do and therefore they should be compensated for that fee. Do you have any details about that aspect of the fee structure for your friend?

@Oleg Enik Thanks for sharing insights from the industry that you are in full time. You're the first person to really answer with details about LTV (loan to value). The higher the LTV, the greater the risk. Also, I'm curious, how does your firm determine "Value?" Is it the after repair value of the property since you say most of your clients are fix and flips? And if it is ARV, whose numbers do you use? The clients' An independent appraiser? Your own due diligence? In the deals I've done so far as a lender, we've used comps from a realtor who works those specific neighborhoods. Thanks.

@Noah Swank You've added a whole new angle to this conversation, which I'm appreciative of. I looked through your Petra website and I see your point. Your company essentially acts as a fund manager of sorts. Your clients are the high net worth individuals looking for stable returns on their capital. You aggregate their funds then turn around and invest in real estate. So on the revenue side, is Petra the buyer in the real estate transaction? If so, Petra becomes the buy and hold landlord of lots of commercial properties, then pays its clients' back from the operational income from these properties. Is that right? I know this is off topic from my original post, but this has really piqued my curiosity! Thanks a lot.