All Forum Posts by: Darryl Dahlen

A guy by the name of Alex posted a thread a few months ago stating he had raised over 40MM using EB-5.

I don't know if contacting him will help, but it may be worth a try.

That is just great Mary. Whether you close this one or not that kind of drive will earn you success sooner than later. Please keep us posted about this plays out. Best of luck!!

They are legit, but more of a bridge lender than a hard money lender, and if memory serves, they like to stick to urban areas

I've talked to Jeff over there several times in the past and he's a straight shooter. If he can't help, he may be able to point you in the right direction.

You may be better served by looking into private money instead of hard money.

Hard money lenders are often comprised of investors. As such, they use more of a "turn and burn" philosophy in order to make a profit since the investors take a big chunk of the interest payments leaving the lender earning most of their money on the points charged.

Private money can be a good alternative to hard money given you're dealing with a wealthy individual. While the terms may be similar to hard money (you may save a few points and get a slightly lower rate), you're much more likely to obtain a longer term loan. A private lender is happy to make 9-12% for as long as they can whereas most hard money lenders have a balloon payment in 12-18 months so they can re-deploy the money and charge points again.

That said, you may want to put together a loan package and see about finding a doctor, lawyer, banker, etc. who is interested in lending their money. They're out there.

I think you've already found your answer. Aside from a few US-based lenders who say they will lend in Mexico and Canada, international hard money doesn't really exist.

Reason being is the loans amounts are often far too small to make it worthwhile to deal with the legal hassles of lending in another country. What happens if the borrower defaults and the lender needs to foreclose? Not only is the lender in a different country from where the collateral is located, but they have to go through a foreign legal system to take the property. Too much risk.

Why are you looking for a lender abroad? Do hard money lenders not exist where you are?

Tony- I'll email you a link to a commercial brokerage in Florida that usually has a good selection of the types of deals you're looking for.

They are available for both types of properties, but I'm inclined to say that there are more bridge lenders for commercial properties than residential.

While I wouldn't call my knowledge of bridge loans extensive, I'll happily tell you what I know as this a great topic. Not to mention, there are a lot of people who have a misconception of what a bridge loan is that could use some clarity.

For those who don't know, a bridge loan is interim financing, that most often, bridges the gap of an immediate need for money while the borrower waits for either the sale of a property or more permanent financing to step in.

Where borrowers most often fail to understand how bridge financing works is in situations where they have a need for money, but do not have the exit strategy lined up yet. In these cases, this is more of what I like to call a bridge to nowhere, and 99 times out of 100, there is zero hope of securing a bridge loan.

This is in large part due to there is usually a pressing need for the loan. A big advantage of bridge lenders is their capacity to close quickly, and by quickly, I mean 5-20 days. In order for that to happen the lender needs to drastically reduce the traditional underwriting/DD process.

This can only happen if the bridge lender is supremely comfortable with the strength of the purchase contract, commitment from the takeout lender, etc. Of course, traditional underwriting requirements such as property type, LTV, income,loan amount, etc. also play a role in the decision making process.

While a bridge lender typically also requires docs that are the same as used by more conventional lenders, they are often times more willing to use documents that have either been ordered by the takeout lender or buyer or were prepared for them. An appraisal is a prime example of this.

As far as terms go,I don't see bridge lenders offering terms all that different from hard money lender. If anything, bridge lenders are more likely to enforce a PPP than a hard money lender, but like anything in lending, there are exceptions to the rule.

It was down for a few hours a couple days ago, but it's been working just fine for me since then.

Your question left out some important information that would allow us to give you an intelligent response.

That said, I'll give you a broad answer. Based on a rate sheet I just received from a lender, you'd be looking at rates ranging from the mid 3s to 4s. LTV and term of the loan account for the variance.