All Forum Posts by: Steve Theobald

Thanks Jay.  I had a company offer to help me get a warehouse line, but they wanted $$$$$$$$$$$$$ to help me get it.  There must be a better way.  Please reply privately or answer here publicly.

Thanks so much.  It fries my brain that lenders like Kiavi can go both ways (broker and direct) and disincentivize brokers from bringing them TONS more clients.  "Oh, no big deal, just add another point on top!"  

Here's an even better one from Conventus (almost verbatim from a real conversation with them): "Hey, we love brokers.  But because we now have to work with yet another person on the deal, we are going to charge double the points you charge. No problem. One for you and one for us.  1.5 for you and 1.5 for us. Easy!" [. . . I complain . . . ] "Huh? What's your problem?  Oh, we are still so much lower than the standard 12 & 2 the borrowers could get locally. So go put on your salesman hat. This is a great deal. Go sell some loans for us!"

I am eager to find lenders willing to treat Fix N Flip brokers the way Retail loan brokers are treated - as part of the team.

Erik, Please tell me more about broker-only wholesale shops.  This is the first time I have heard about these.  Please list some here publicly or send me a private message? Thanks!

I have heard about selling performing notes, but never talked to anyone buying them.  Please explain how the process works.  I don't have any myself, but I broker loans for 8 guys, and they might be interested.  We generally have notes with trust-deeds filed in the state of Utah.  

Pretend there is a 12 month note with a rate of return of 12% APY on a purchase and rehab loan of $300k.  Most of these notes are paid off at the 6 month mark.

What is in it for the Note holder if he sells to you?  I am guessing he won't make any extra selling his Note, but will in fact lose some to just get the bulk of his money back out...   or am I missing something?  Thanks.

Quote from @James McGovern (https://www.biggerpockets.com/users/jamesm1308):

"I have found the two private lenders I use via LinkedIn."

Quote from @Amir Khan (https://www.biggerpockets.com/users/amir_khan) from another forum:

"I raise private money in a variety of ways using systematic tools and strategies. One of my main ways of raising private money is doing free online educational workshops. I do this in partnerships with SDIRA custodians/administrators.

"Another way is by creating my own PMLs. Because of my systems, many "want to be" PMLs approach me and I do private money lending crash course for them. They then invest with me."

Quoting from Mortgage Broker forum:   Quote from   https://www.biggerpockets.com/users/mike_k_74
:

"You keep asking other investors where they get their funding, guaranteed some of them will have private money. Try to get the name and make a call. Most local, volume flippers have a private lender that fronts all the money. Purchase, rehab, closing costs. If you know how to wield that weapon it can be very profitable."

Thanks Mike, this is a great approach.

 Thanks Mike, great insight.

I thought I hit a gold mine with one of my 8 lenders.  He is a former CEO with lots of rich friends.  I said," Please introduce me to your friends!"  Next thing I know, he has formed his own fund with his 10 friends, and they went off to invest in 14%+ high-return deals.  Yes, they still have about $3M out with me for diversification, but I got a little broad-sided by that one, LOL.  (I guess this little dance he performed is why he was CEO material!  See a good deal and capitalize on it...)

I am a private money broker in Utah.  I have done about 85 loans in 4 years.  I have loaned out a total of $23M and have $9M out currently.  But I keep running out of money.  If you are currently lending, please reply and let me know your top 3 ways you have found deep-pocketed individuals willing to listen to your own story and let you lend out their funds.  I am paying 12% to the lender.  The average loan is $300k and 6 months long.  I am a licensed real estate broker and licensed lender and the safety of funds and returns are great.  So this is not a hard sell, but I just need to find the right people willing to lend.