Unable to Turn private lender's money - Posted by mike

Posted by Bill Jacobsen on May 18, 2007 at 12:28:06:

Loans are being made every day by conventional lenders. I don’t know why your particular buyers can’t qualify. It is true that at lower price ranges you may be attracting buyers with less credit ability, but believe me, there are good buyers out there. Talk to some lenders that work with first time buyers or to some sub-prime lenders. Find out the requirements so you can help your potential buyers.


Unable to Turn private lender’s money - Posted by mike

Posted by mike on May 18, 2007 at 11:15:51:

My team and I have currently been using private money to buy property. We are having trouble with conventional financing for the end buyer because of high foreclosure rate. I don’t know how hard money would work in these situations because the properies are already being sold at 65%-75% ARV leaving only minor cosmetic repairs needed, but still leaving the house financiable for conventional lenders. The goal is to turn the Private lender’s money quickly. Any advice would be greatly appreciated, thank you.

Re: Unable to Turn private lender’s money - Posted by Sailor

Posted by Sailor on May 18, 2007 at 18:53:42:

The buyer’s problem is probably sub-prime credit, not the foreclosure rate. Actually, for those w/good credit, the terms are getting downright yummy. You’ll probably need to clean up the buyer or find another one. If the former, as a matter of conscience I’d check to make sure he/she really can afford the property & is prepared to handle the finances.

I work w/nothing but sub-sub-prime folks, but because I do my own financing I try especially hard to make sure they are prepared for all the expenses of ownership.