Soft Money Lenders to the Rescue? - Posted by matt

Posted by matt on January 25, 2002 at 12:21:08:

Bob,

I will contact you when I find a property and we can talk in detail.

Regards,
Matt

Soft Money Lenders to the Rescue? - Posted by matt

Posted by matt on January 23, 2002 at 13:34:21:

I have read that hard money lenders are the people to go to if you need money to invest in RE and you have bad credit. If you are someone such as myself that has an excellent credit rating who would be the best lender to go to if I’m going to Flip houses or rehab them myself? Would a regular bank be the best place to go since I would get a better rate? Do banks lend money to investors that want to Flip or rehab houses? I do not own my own home so I can’t use an equity loan.

I’m interested in any and all opinions on this subject.

Regards,
Matt

Re: Soft Money Lenders to the Rescue? - Posted by Bob Beckman

Posted by Bob Beckman on January 24, 2002 at 12:20:30:

Matt, I read some of the suggestions to your original question. They all seem plausible enough. Let me give you a few good reasons why a hard money loan from the right source can still make a lot of sense: 1) No down payments 2) Very quick and easy loan turn arounds 3) No pre-payment penalties (or seasoning issues). And in my case, I would be willing to offer you a Six Month-No Pay Plan. Your interest is a little higher, but these are short term loans, not fifteen or thity year loans. I just wanted to tell you some nice things about hard money loans. They are not really for “bad credit” people as you suggest. In fact, I have developed great relationships with Creonline faithfuls that have great credit and have done many successful loans with them.
Good luck,
Bob Beckman
Rehab Funding
www.rehabfunding.com

Re: Soft Money Lenders to the Rescue? - Posted by Tim

Posted by Tim on January 24, 2002 at 11:48:23:

Good credit? Use revolving credit to purchase and rehab… CREDIT CARDS!. (If your limit is high enuff)
Most local banks even will be willing to refinance with a mortgage once you complete the rehab a and attain leases/income. Make sure your purchase/rehab expenses don’t exceed 70% of the bank appraisal…
and that the rental income will cover the mortgage/taxes/insurance/vacancy.
Their loan will pay off your purchase/rehab expenses… you will have it for no money down (Thanks to the credit cards) Credits cards are offering 0% interest for up to 9 months now with pretty low monthly payments… thats your only carrying cost.

Re: Soft Money Lenders to the Rescue? - Posted by Dynasty

Posted by Dynasty on January 23, 2002 at 18:40:14:

If you have a good credit score then try for an investor loan from a mortgage company. The rates are not near as high as a hard money loan. They are good for rehabs. My mortgage broker suggested this one to me.

Dynasty

Re: Soft Money Lenders to the Rescue? - Posted by matt

Posted by matt on January 24, 2002 at 12:48:19:

Bob,

Thanks for the insight. Since I am a beginner,I thought that hard money was really for those who couldn’t get a loan from a bank.

I will check out your site. Do you lend in NY?

Regards,
Matt

Re: Soft Money Lenders to the Rescue? - Posted by matt

Posted by matt on January 24, 2002 at 12:39:44:

Tim,

Thanks for the reply. I thought about that idea but it presents some problems. The first is homowners don’t have the ability to accept credit cards so I would have to use credit card checks. I don’t know how a homeowner would feel about that but it’s an option to try.

The second problem is that I’m not looking to rent. I want to assign the deals I get. I’m a beginner and I don’t want to deal with tenants right now. Plus from what I read from posts on this site, renting is not a good idea when first starting out. I want to get the deal and out ASAP until I build more confidence and expand my knowlege.

Thanks for your idea. If you have others, please let me know.

Regards,
Matt

Re: Soft Money Lenders to the Rescue? - Posted by matt

Posted by matt on January 24, 2002 at 24:52:57:

Dynasty,

Thanks for the helpful information. Did you have your mortgage broker recommended to you or did you find them yourself? Any suggestions as to what to look for in a broker and questions I should ask?

Thanks for the help.

Regards,
Matt

Re: Soft Money Lenders to the Rescue? - Posted by Bob Beckman

Posted by Bob Beckman on January 24, 2002 at 20:48:56:

Matt, I do lend in NY. I’d be happy to try to help you.
Bob Beckman
Rehab Funding