Need Help Closing Deal - Use Hard Money Lenders? - Posted by Buddy

Posted by Buddy on March 22, 2000 at 08:53:21:

Sorry I didn’t get back to you sooner - I’ve been on the road with my job lately. Thanks for offering to help Ed - but I lost the deal. I was afraid of that happening. To answer your questions, the property was in a Chicago suburb and my credit is A+. As I was trying to figure out how to get cash to close this deal another investor who had the cash took it. As a newbie, this has been my problem - I find a great deal but can’t seem to work out the financing.

Need Help Closing Deal - Use Hard Money Lenders? - Posted by Buddy

Posted by Buddy on March 18, 2000 at 20:37:16:

I found a property which the seller is willing to discount and sell for 60% of FMV. He will only sell for all cash - no financing, no L/O, but will give a heavy discount. Here’s the problem - I have no cash and thus I’ve been stalling on the deal. I thought about going to a hard money lender but wasn’t sure how much cash they want me to have in the deal. What’s your experience been? Will hard money lenders loan the entire amount if the home is bought for 60 cents on the dollar? What’s the general guideline with these types of lenders - ie. how much equity do you need in a property for them to fund the entire thing? Or will they ever fund the entire amount?

Re: Need Help Closing Deal - Use Hard Money Lenders? - Posted by Ben (NJ)

Posted by Ben (NJ) on March 18, 2000 at 20:46:36:

I do some “subprime” lending on the side and I require 65% ltv or less, first position mortgage, charge 13% and up with 4 points and all closing costs paid by the buyer. Most hard money lenders can move quickly as long as they have a current appraisal and title report.

Re: Need Help Closing Deal - Use Hard Money Lenders? - Posted by Ed Garcia

Posted by Ed Garcia on March 18, 2000 at 23:07:49:

Buddy,

I have been busy for the last week and haven’t been looking at the board.
The first post I see tonight is yours. For starters, you may not even need hard
money.

You don’t tell us where you or the property are located?
You didn’t mention your credit being bad?
The only impression you give me is that you don’t have CASH to close.

Buddy to be honest with you, there is not enough information here for me to
help you. Ben( NJ) below gave you a “subprime” quote that makes sense if you
needed to go “subprime”, but I’m not sure you do.

I would like to suggest for you call me at (909) 944-0199 and we can talk.
Tomorrow is Sunday, but I have a lot of work to do and will be in my office
until 1:30 pm California time. I have no doubt I can set you straight with one
phone call.

Ed Garcia