All Forum Posts by: Darryl Dahlen

I did a quick search on another forum I belong to and found the following lenders:

Flagstar
First Cal
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Luther Savings Bank
Pacific Bay Lending

I make no claims as to the viability of the above info or the capabilities of the lenders. I've only heard of two of them, but I'm not in residential lending either. Just trying to help is all.

Paul nailed it. Just because someone wants to take over a non-recourse loan doesn't mean the lender isn't going to look at you and your finances.

Not to mention, a lot of lenders charge a fee (typically 1 point) to the new borrower for them to assume that loan.

If for some reason you as the new borrower don't qualify for the loan, you "might" be able to bring on a partner to shore up whatever conern the lender has.

I asked my attorney a while back if there were any advantages to a person setting up an LLC in Delaware if they were going to buy property in another state.

He said Delaware had eliminated or scaled back a lot of the benefits that originally made it an attractive state for LLCs.

When you couple that with the expense of registering the LLC in the state you'll be buying property in, he said you are most often better off simply creating the LLC in that state.

As mentioned, you should consult with an attorney to discuss your particular situation.

As Brian stated, there are a lot of sharks patrolling the waters looking for fresh meat when it comes to lines of credit. Most prey on desperate borrowers who are willing to pay upfront fees on the promise of a quick closing knowing the loan has no chance of closing.

Still, there are a couple legitimate lenders out there.

I know of one lender, who is a bank, who has a commercial equity line of credit program. You need at least a 700 credit score to qualify and their max LTV is 75%. The property has to debt service at a 1.2 ratio and they will look at the past 2 years business, and personal, tax returns.

While they can go in second position behind a first, I can almost guarantee you that will not be possible if there is a hard money lender in first position.

The upside to this program is you are dealing with a reputable bank, and their fees are low.

Feel free to email me if you'd like to learn more.

Wachovia had a good ULOC program, but I don't know the details on it now that Wells Fargo took them over.

I know WF has their own program, so you might want to reach out to them and see if they have anything to offer you.

https://www.wellsfargo.com/personal_credit/products/options/unsecured_line

I replied to your email. Hopefully, my guy can help you out. He's certainly the right person to talk to so if he passes, he may be able to point you in the right direction.

You aren't giving us much to go on. Without knowing what you're trying to build, it really leaves for a lot of speculation on our part.

Based on what little I can glean from your posts, here is what I can tell you.

-Hawaii is not an easy place to obtain financing (of any sort) simply due to its location, and unique issues (lava zones).
-For "most" types of construction, you are looking at 50-65% financing, and even that is hard to find in this market. So, the first question is do you have up to 50% of the funds you need to bring to closing?
-For a pure land loan, you are realistically looking at a LTV of 50%.
-Is all of the architectural and engineering work done or is this just dirt? Do you have the money to pay for all of those reports?

You could put the property under contract, but I wouldn't advice that without having a real good idea if you can obtain financing. There is a good chance you'd loose the deposit, and if the seller has another interested party, they could make the deposit substantial.

Again, without knowing what you are trying to do, it is hard to tell you with any detail if you actually have a viable deal.

As it stands, I think you should consider the real possibility of contributing 50% of the money needed to give this scenario any real hope.

I don't know why he said Memphis only.

It might not hurt to reach out to my contact. You never know what might happen once you two talk.\

PM me if you want his information.

If you are buying in the Memphis, TN market, I have a bank for you.

I made a call to someone I know who is in the banking business there, and as long as you're buying in Memphis, they can help you.

I hate to rain on your parade, but this cannot close by January 1. This would be a hard money deal all the way, and given the location, and nature of the loan, this is not in realm of possibility for any lender I know of.

There is also the fact that for land, the LTV is far too high. You didn't mention what sort of property you are lookng to construct, but I really think the point is mute.

I hate to tell anyone that their deal is DOA, but in this case, I think you need to hear it like is from someone who is involved in commercial lending.