Posted by Anthony Infelice on August 16, 2003 at 17:37:57:
need to borrow $5000.00–short term—20% int- can secure
Private Lenders!!! - Posted by Natarsha
Posted by Natarsha on August 06, 2003 at 20:36:30:
Hello All,
Can anyone tell me if Private Lenders typically are only used for the purpose of buying rehab properties or are there other quick-turn methods you can use private lenders for I talked to a private lender in my area who asked me what type of projects will I be doing.
Re: Private Lenders!!! - Posted by jasonrei
Posted by jasonrei on August 06, 2003 at 21:42:11:
-
I usually use my private lenders for rehab projects. I call a deal a rehab if it will cost more than about $6000 to fix up; some investors don’t consider a deal a rehab unless it has serious structural damage.
-
I am about to have one private lender fund a deal I don’t plan on fixing up (selling it “as-is”).
-
I have asked a couple of my private lenders if they were interested in doing 3-5 yr loans on a couple of duplexes I have, they said no. I think they didn’t want to commit to a longer term with the lower interest & higher LTV I was offering.
-
Another use of private lender money would be for down payments or repairs. You can put their money behind another lien.
-
If you needed quick cash to close on a deal (and there wasn’t time to get a hard money loan), you could pay cash using your private lender’s money then cash him out with proceeds from a hard money loan.
-
I could also see using a private lender’s money this way: You buy a house using private lender’s money. You fix it up and sell it to someone you think will be able to buy the house in one year (someone who doesn’t qualify for your house because of lack of title seasoning, or someone who can get a loan if they make 12 on-time rent or mortgage payments). One year later they buy the house and your private money lender gets their cash back.
-
I’m sure there are many other possibilities, but I think rehab stuff is what they are primarily used for.