Too small for Hardmoney - Posted by Shenesa

Real Estate Investing
1

Posted by Stacy (AZ) on May 31, 2000 at 13:14:18:

Hi Shenesa-

A few thoughts-

  1. Your deal may be borderline for a loan because it’s so small. But, maybe you could agree to pay more points to make it more attractive. You can always ask and bargain. As long as you can still see an acceptable profit, who cares about paying a few more points?

  2. Keep looking. When you said “broker”, I started to wonder if this was a true hard-money lender. There may be a lender out there that will loan to you based on value after fix-up. Typically, I’ve found that they hold the fixup funds and release them at stages.

  3. Look in the Sunday paper under “Money to Loan” or “Real Estate Finance” if you are running out of ideas. When I was starting out, I also called all the mortgage lenders in the yellow pages and described what I needed (equity based, not necessarily credit based). Eventually, some people referred me to a couple of hard-money lenders, one of which didn’t advertize.

Good luck!

Stacy

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Too small for Hardmoney - Posted by Shenesa

Posted by Shenesa on May 31, 2000 at 11:14:00:

Hi guys,

Thought I will give you an update on my hard money lender search. I spoke with a broker this morning and he stated that the dollars where too small for his private lender. Needless to say I thought that was a little confusing since I have the house under contract for 14k and its worth 50k. The broker said that the lender wouldn’t be making any money on the 14k loan,off of the points, he would only make about $700.00. Now please correct me if I am wrong, but I thought the loan would not be for the 14k but 60% of the value of the house=30k and that’s where the points come off.

However, if I am not able to find a hard lender for the property, I will resort to flipping it.

Thanks to all who responded to my post of yesterday.

Much Success!
Shenesa,NY