Posted by Ed Garcia on December 26, 2000 at 11:36:14:
Bob,
As you know I just answered your other post, and I feel that I don’t know enough about you, your credit, your circumstances, your market place, or how you view a deal.
You say that you want to do 2 to 4 deals a year. I like the idea that you have at least set yourself some sort of goal for next year.
When I question the way you view a deal, the first deal you presented us with is considered a land loan. A lender including a hard money lender will look at the LTV (loan to value) differently than if it were improved property. Although I know you made mention of the mobile homes, unless they are attached to the land by a foundation, they are not considered improvements.
Land loans, depending on location, very from 25 to 50% LTV. In most circumstances if the property is in a rural area, you’re looking at 25 to 35%. If the property is in a metropolitan area you can get the 50%. Again I’m giving you the rule of thumb.
Bob, if you have good credit and can find hot deals like you’re suggesting you want to do, then the way to go is to find a small local bank and develop a relationship. You would be surprised what they can do for you once a banking relationship is established.
If your credit is lacking, then find yourself a good LOCAL broker who has a local hard money lenders available. You can run ads for hard money in the same manner you’ve done on your above post.
There are many lenders who solicit this site and present themselves as hard money lenders and then don’t perform. I would like to caution you of that.
My suggestion is to deal with a group that either you’ve heard of, and to your knowledge come highly recommended, or a referral from a business associate, friend, or referral.
Ed Garcia