Bert, I’bet there are few properties to buy in your area. And it probably takes longer to sell one if you found it.
While I have never lived in a rural/small town enviroment the principles will remain the same. Is there a mortgage broker in Minneapolis? Not all loans in your area are done by those 3 companies. If I was looking for money in a small town I would be finding all those people with money-the local doctor, rancher, store owner, real estate broker. I may have to educate them. The advantage is that there is not the competition for the money or the property.
Of course if the poor boy doesn’t work harder or smarter then I guess things won’t change.
I was reading some of the online articles regarding obtaining a first from a Hard Money Lender (Asset based lender) and asking the seller to carry a second to the first. This sounded great, no cash outlay, easyer motivating the sellers with cash, ect… So i set out on my journey today to call all the adds in the paper and phone book under mortgage brokers etc… Locate a couple “Hard money lenders” get the ball rolling in their court and go out a make my offers! This sounded way to good. After my first 30 Phone calls to the mortgage brokers, etc… (Yes 30) i was amased to learn no one even knew what a “Hard money lender” OR even “An asset based lender” was. WOW! Now this is discouraging! I ended up actualy explaining what it was in very simple down to earth terms. Every single one of the 40 i called said no we dont do that, they wanted credit, downpayments, high interest 12 1/2 to 14 1/2 % (Hard money interest there if you ask me) and ratios etc… All thought they promised they could get the mortgages thru with all the correct downpayments and history and stated income, no one fell into what i was looking for.I Live in indiana and was amased to find that asset based lender practically do not exist here or are at least hiding in the shadows. Did i ask the right questions? Is there any asset based lenders in other areas that work in areas other than there hometowns? Any tips, ideas, names, help from anyone?
Re: HARD MONEY LENDERS-WOW! - Posted by J. Clifton
Posted by J. Clifton on June 09, 1999 at 17:25:51:
Try other investors, clubs, title companies, etc. as already suggested. Take a half day to do a web search for NATIONAL private lenders, print out their pages, and either contact them for the money or show their info to the local brokers (the ones who say “that doesn’t exist”), to educate them as to what true hard money is. Or, place your own ads in the financial classifieds, saying, “Seeking hard money RE loan, no credit/income qualifying, 18% (to get someone’s attention), one year, 50% LTV.” See what happens.
Look in the mortgage section of your Newspaper or the Yellow Pages – there you will see some lenders using the terms “No credit check” loans, “No documentation” or “No Doc” loans. This should send you to companies which are doing the hard money loans.
You should look to other investors for referals, and call title companies. Find title companies that do a lot with investors (you’ll find most investors deal with the same group of attorneys/title companies). You can bet that if you ask the attorney in these offices that if they know of anyone who would lend money if the deal was good enough they should know someone. They may not want to give there name out but if you ask that your name be passed along and have the lender call you they would probably do it, after all it makes everyone involved money.
I know LeGrand does wholesale/retail bootcamps in Indiana , so there must be @ least one real estate investors association in your state. That would be a good place to start networking… Just because certain individuals fail to fathom the finer ( or even the rudementary ) points of finance doesn’t mean that there are not others that do. There’s no shortage ( that I am aware of ) of people willing to lend money on good deals. Don’t be surprised if a private lender ( on your first deal or two ) wants to see you put a little of your own $ into your deal to show your level of seriousness. I’m no expert , so take what I have to say for what it’s worth.
I run in to the same thing as John, only more so. There are NO newspaper ads for lenders. The yellow pages, once you filter out the banks, lists 3 mortgage companies (Avco, GAP, and Money Store), and there is only one title company. The nearest investors group is in Wisconsin (I’m in North Dakota.)What’s a poor boy to do?
I agree with Chris that other investors is the way to find your hard money. I was having the same trouble until I joined two REI clubs, and there were several!
Good luck.
Carol