All Forum Posts by: Sharon Evans

Hi BP,

Would anyone be willing to share their experience, and hopefully recommend, some good Private Money Lenders in ATL? 

I found a rough list via Google Search, but honestly, based on the website and lack of reviews, it's hard gauging their viability without some first-hand accounts. Here's the list I have so far...

• 1.EquityMax Financial, LLC
• 2.Red Rock Capital
• 3.Vertical Fund Management
• 4.Sunset Equity Funding
• 5.RCN Capital
• 6.Temple View Capital
• 7.Kirkland Financial LLC
• 8.Bridgewell Capital

@Wayne Brooks, thanks for the heads up! I actually received a quote from them yesterday on a property and, surprisingly, they were about 26% less than 2 other quotes I received from local GCs. I was quite surprised myself, but apparently the savings come from the fact that they don't mark up the materials, since they're sourced directly from LOWES. The GCs were adding tremendous markup to the flooring, fixtures, lighting, etc. 

Of course, they won't come out as the low bidder on larger projects, but they seem to be a viable option for small-midrange renovations. 

Another benefit is that you don't have to worry about them paying their subs and needing the money in order to finish the job.

@Stacey Paulin, not so much "determined" as I am curious and just seeking knowledge. I'm a strong believer in learning all the ins and outs of something so obscure, as many HMLs are, before diving in. My questions are more a reflection of my desire to understand the "Best Practices" and less of my stubbornness, LOL. 

I have, however, searched the forum and found some very creative alternatives that will get the job done :)

Hi BP,

I'm seeking an investor friendly RE agent with knowledge of the North Fulton area (possibly other areas such as Decatur). I'm looking to start looking at possible fix and flip properties next week and would like an agent with lots of investment experience. Please recommend anyone who fits the bill.

I could also use some recommendations for GCs familiar working with HMLs (draws). Thanks!

Hi All,

Please be patient and kind, as I'm new to using hard money lenders, and am a tad confused. Using hypothetical numbers, let's say I need $80k to purchase a property and $50k to rehab, totaling $130k. The ARV is $200k.

1) I was told by a potential HML in Atlanta, GA that there are no draw requirements since they lend based on LTV, not ARV. What exactly does that mean? My next question to him will be "What is the maximum LTV?", but does his statement mean that they do not lend rehab costs? Will I be expected to show that I have the rehab costs already in the bank?

2) How does a HML work if I only want to finance the purchase costs, and use contractor financing for the rehab? I'm sure they would perceive some risk in this scenario since they aren't financing the entire process, but I'm curious as to how their closing requirements (in terms of "showing the money") would change based on that scenario.

3) What if I find a lender who will finance 90% LTV and 100% rehab, but my contractor is willing to wait for the draws. Would I still be required to pay the rehab costs upfront before a draw can be made? This part is confusing because I'm in talks with LOWES, who will either finance or take draws from the lender, for a huge portion of the rehab. Being a large corporation, they can afford to wait on the draws or to finance the rehab portion to me directly at a lower interest rate than the HML. I want to go this route, but I don't really understand how this scenario will be handled by the HML.

Thanks for your insights!

Not sure what you mean. If you're reading the thread, I've heard all the advice. Maybe you're not reading my responses correctly? YOU haven't said anything constructive or in the way of advice. 

Thanks @Andy Mirza! It's so funny because I was just looking at Groundfloor and Patch of Land :) 

I should have mentioned that this first flip will definitely be in the low-mid range. Hopefully, we can find something that needs no more than $40-$50k in work. We're taking it slooooow, and don't want to gamble with our savings. 

@Nicholas LaGatta Thanks! That's the clarity I was looking for :) There are so many options, and so many potential outcomes in this business. It's nice to have a sounding board to bounce ideas around from time to time. 

Thanks @Nicholas LaGatta :) 

Just so I'm clear, you're saying that it may be better to get a conventional loan, and a personal loan for the rehab? If so, then that was, in fact, going to be my next question :) His credit is good, so there would be no problem qualifying for a conventional loan. Additionally, if we were to contract with LOWES for the renovation, they offer project financing that he would also qualify for (or we could do a personal loan for the renovation). In either case, I think we'd come out better than using a HML. We just don't want to dip into our savings to fund a 20% down payment.

@Kelly Rambo thanks for your insights! To clarify, this will be HIS deal. I've done flips before in Chicago, but this will be his deal, his capital. Let's just say that I'm the brains and he's the brawn (and the money), LOL.

I agree that we don't want to over-leverage, which is why I was curious if there has been success doing it this way from anyone in the investing community. My past deals were all FHA 203k (my first deal), and conventional. However, aside from my first rehab with the 203k, my conventional loan deals were all on fully occupied multi-unit properties that needed very little repair, so aside from using an FHA loan, I don't have any experience financing with a HML.