All Forum Posts by: Sarah Barrett

@Jeff Wheater I am a local lender in Kansas City. I run a Private lending arm of an investment company. We pair passive investors with real estate borrowers. Let me know if you'd like more info!

Thank you,

Sarah Barrett

@Bill B. I am in Missouri and wasn't required to maintain my NMLS when I was a commercial lender for 12 years. Now that I am in hard money lending, I am exempt altogether. If @Toks Akindele is using private or hard money, chances are his lender won't have an NMLS. Good to know that Nevada has stricter guidelines!

@Toks Akindele Keep in mind not all lenders are required to carry an NMLS. For example, I am a Hard Money Lender and I do not offer owner-occupied loans, only commercial loans therefore I do not have to provide my NMLS number. Just because a lender doesn't have an active NMLS, it doesn't mean they aren't legitimate. I always provide a signed term sheet that outlines the terms of the loan and approximate cost of fees. Once it is signed by the borrower, it is legally binding (but not a commitment to lend).

Thank you, 

Sarah

I am a HML as well. I am experiencing the same issues. There are about 100-200 local and national lenders I'm competing with. I am working on building relationships and speed to market is HUGE! I commit to 24 hour decisions and as little paperwork as possible. It's still tough though. Don't settle for bottom of the barrel borrowers, take the time to meet the right people and always keep your commitments.

Hope that helps!

-Sarah

Just an update on my meeting with them:

They wanted to charge around $25 per lead and couldn't make any guarantees on the quality of the leads I would receive. They also had a minimum lead number that I would be charged for. I decided to go another route!

@Abe Macias The banks I worked for in the past ( I am now a HML) lent 80% of the purchase price plus rehab regardless of the appraised value. When looking at refinancing, are you getting a commercial loan or personal mortgage? I would keep calling around. I know that there are local banks out there who will lend on the current appraised value instead of the at risk equity (purchase price + rehab). They will most likely charge a higher rate but it will save you money in the end. Lastly, do you know why they want you to bring money down? Is it the DSCR of the property or DTI or is it fully based on the property value?

I kind of jumped all around there. I hope I helped a little at least!!

@Mike Schorah,

Can you provide more context to your question? In my experience, you don't need a HML in a JV deal because one of the partners provides the capital for the project and the other partner has the industry knowledge to complete the work.

@Remi Olawuyi I am a short term lender in Kansas City and work with multiple investors out of state. I'd be happy to help in any way! Thanks @Garett Weber for the tag!

Are you looking to flip or buy/hold? Most hard money lenders are asset based and don't put a lot of weight on personal credit issues. If you are planning to buy/hold, it might be more difficult because a lender wants to ensure that you can achieve your exit plan of refinancing.

Did you sign a term sheet? I would reference that for costs you are responsible for covering. It is normal for a bank/lender to pass 3rd party costs such as title, appraisal and any environmental or structural engineer inspections onto the borrower as these would be fees you would be responsible for paying at closing. a lender would quickly go bankrupt if they covered the cost of these items with every lost deal. If the loan didn't close, I'm not sure what the attorney's fees incurred would be as they aren't usually pulled in until it is time to prepare closing docs. Talk to your lender to find out what exactly the fees are and ask for original invoices from the 3rd party vendor.

Good luck!