All Forum Posts by: William Coet

We lend our own money against local flips, @William Coet, and there are so many red flags here that we wouldn’t even think of making this loan.

Connecting with “a guy who seems to be a ‘straight shooter’,” is not the same as meeting this individual in person to see his flips and gage over lunch whether this is someone with whom you want to do business. That he has kids in a local school is irrelevant.

You do realize that a double-wide is not real estate. It’s personal property – not unlike lending against a car. Is the land included? We never lend on anything until we’ve actually walked through it with the borrower. How have you verified that this is a good deal for your borrower and safe for you to lend on?

If this were a real estate loan, you would not send a check to the borrower. You would wire the loan proceeds to a title company for disbursement after clear title has been established, insurance is purchased, and all the documents provided by your lending attorney have been signed.

Being named on a deed makes you an owner. Are you looking to become a partner here with all those risks (and a JV agreement), or simply a secured lender?

Sorry if I’m a bit harsh but this is not how to lend money secured by real estate, William. Find your borrowers face-to-face at local real estate clubs and get to know them a bit. Set some lending criteria and learn to evaluate their flips. Most importantly, meet with a good lending attorney who can explain the lending process in your state, including usury and licensing requirements, and can provide an airtight set of loan documents. Please note that a lending attorney is not the same as a real estate attorney.

Good luck to you, William.

 I would definitely slow down here - got to ask why this guy is going to you (a first time, little experience) for a hard money loan if he is so legitimate/experienced - begs the question, why does he not have the funds to do this in cash (sub$100k?) or why isn't he going to a normal hard money lender (can't qualify?)

Depends what kind of loan you get. 

Well a few weeks ago I wrote about a window of investment opportunity. 

The forecast appears fortuitous? Or somewhat accurate.. In the past 10 days I've had no less than six clients get pre qualified for a potential property purchases. 

I had several investors close on multi unit properties in January, and although reflectively they might have paid a slightly higher rate of interest compared with today, there was almost certainly less competition than would be expected today. 

A good proportion of properties with investment potential that were languishing on the market have recently gone pending and several recent listings have had multi offer conditions. 

As rates are expected to slide and stabilize and we enter peak housing season, I continue to anticipate a robust and perhaps surprisingly active Spring and Summer market along the OR & CA Coasts. 

Almost all of my local and extended industry colleagues and associates have reported a similar spike in sales activity and interest, with lesser intensity on retail commercial or office related properties. 

Both buyers and sellers of investment properties are encouraged to recalibrate to current market conditions in their localized area for consistent evaluation and analysis of investment returns and potential. For example since September/October '22 rates are down 1-1.5%+ on some alternative lending products such as bank statement verification loans. 

Also with a wave of buyers potentially competing for desirable properties, it could be a listing opportunity in what is trending towards a fresh seller's mini market.