Need A Loan

[MaurepasMadness]

I have info on a great property and I cant find a loan cause I have a back injury and cant do hard labor anymore can someone help please

[Dan Auito]

Where are you located? Please fill in your profile so folks will know where you are from. Then they will answer up if they are able to help when they know you are in their area! So where are you located. Welcome aboard too!:thumbsup:

[brianb_cobbres]

MM,

Another good question would be what type of loan are you looking for. Is this a house you want to live in, a rental, a rehab? Not sure what having a back injury has to do with getting a loan so I would love to hear what mortgage brokers have been telling you.

Let us know.

Brian

[Chap]

MM,

Another good question would be what type of loan are you looking for. Is this a house you want to live in, a rental, a rehab? Not sure what having a back injury has to do with getting a loan so I would love to hear what mortgage brokers have been telling you.

Let us know.

Brian
I was thinking the same thing.

[MaurepasMadness]

I have an aunt in real estate in destin. She gave me this tip she is gonna help me show it cause I live in La. I wanna flip this property I can pick it up for about 100,000 and it needs min work the emv is 216,000. Lenders wont even look at me cause im new in the buisness and because I cant work I have been outta work for about a year because I have 3 messed up disk in my back I have no educatuion therefore I know how to do nothing but hard labor like construction. Is there anyway for me to get a lone thru somewhere by just the equity in the house. All lenders tell me is its too much risk because now my credit is so screwed from not being abil to work.

[brianb_cobbres]

Ah, that makes more sense. You really cannot use the equity in the house yet but you can get a hard money loan that will give you enough cash to buy and pay someone to rehab the house so you can resell. Hard Money is based more on the deal than on your credit so you should be able to swing it.

You may also want to post more of the details on this board as we may have some members that partner with you or buy the contract for you. Thats a good point, get it under contract.

[MaurepasMadness]

I will do because I dont know anyone that gives hard money loans. Where can I find someone of this nature.

[brianb_cobbres]

Try using the search on this site. To get an idea of how the program works you can look at www. investwell.com. I am not necessarily endorsing investwell but their site explains the program and it is the only one I can remember.

Good luck

[Randy (SELA)]

Maurepas,
I am not far from your area. Maybe we can work something out together. Email me when you get a chance.

[MaurepasMadness]

Sure that would be great. Where is not far and can we get together and talk. I wouldnt mind a 2nd head to help out here. Im kinda running in circles trying to get a grasp on everything but I think Im gonna be to late for this one because I can't get this loan thing to work for me. I guess thats just my luck anyhow. Look dunno how you wanna help but I dont mind spliting the profits on anything I get as long as you can help me start this thing up. And if you cant I would understand I take rejection very well now. Thanks for contacting me and hope to here from you soon. Thanks Kristopher Sanchez

[Randy (SELA)]

Maurepas,
I sent you an email

[Just Information]

The term "Hard Money" generally refers to privately placed loans as opposed to institutional loans, which usually have more stringent underwriting guidelines, for both the type of property used as collateral and the credit worthiness of the borrower. The most compelling reasons for using Hard MoneyLenders are:

1. Less time involved
2. Less qualifying to close your transactions!

Equity lender, hard money lender, private investor or what ever term one uses can be a great source of funds to do real estate transactions and the question of how to find them comes up often!

There are numerous ways to do this, and no two investors are exactly alike, so it's important to be innovative and customize your proposal to the specific "hot buttons" for each funding source.

One of the greatest advantages of real estate investing is the power of leveraging other people's money.

Most hard money loans are made using the property as the primary collateral for each loan. You are not required to furnish statement of income, financial statements or income tax returns to get a loan. Your stated income and the ability to repay the loan based on your project are considered in approving you as a "Borrower".



This is one of the most overlooked form of funding. There are small companies and individual investors willing to invest in your investing projects. Many do charge high interest and points, but it is simply the availability of money, not the cost that you are looking for when you buy, rehab and resale "Flip" real estate for a profit.

We call this "OPM" Other Peoples Money! You are simply using "OPM" to profit in your real estate transaction. So does it really matter when you plan to sell for profit what it cost to borrow money? NO it does not!

We purchased a property some time ago using a hard money loan that was based upon the value of the property not the value of a credit report for $15,000, The property was worth $37,000 on the open market and we paid the lender $4,483 for a $15,000 loan. This sounds outrageous at first paying 18% interest and 8 points for a total loan pay off of $19,483.

We sold the property to another investor for $27,750 (75% below market value). We got net cash from the loan $15,802 less the purchase of $15,000 put $802 in our pocket and sold the home in 90 days for $27,750 after paying off the hard money loan and all closing cost we netted from the sale $7,434 plus the $802 we pocked from the loan a total profit of $8,236.



Hard moneylenders are private individuals and small local companies that operate in making loans to the desperate or needy investors the same way regular banks and brokers service traditional customers.

Hardmoney lenders look for:


A property purchase project that is clear, concise, realistic, and honest.
They do not deal in dreams but in fact and profit.
You must show them that the project is viable, limited risk, and above all you must have your profit exit Strategy clear and concise.
Most will be looking for experience in you (This can come in your displayed confidence in your project) You have to get them to believe in your abilities and your feasibility to carry out the project.
You should provide them a business plan.
You should provide them a project plan.
The more details on the property you provide the better off you will be.

You will find no typical transaction when it comes to hard moneylenders.


Interest rates: 10 to 18 percent
Balloon payment: typical, usually due after 1 or 2 years
Most only will want a first mortgage
Loan-to-value ratios run from 50 to 65 percent and in some cases as much as 80% under special circumstances
Points can range from 3 to 10
You will most likely have to pay the closing costs and due diligence
And commitment fees ranging from 1/3% to 1% of the loan amount

[Just Information]

You can:


Use the seller’s existing financing for part of the purchase price. Buying "subject to" you only have to fund the money for the seller’s equity!
Get a cash buyer at 90% of value and do a simultaneous close or flip your deal to the buyer for a cash assignment fee
Sell your contract to another investor, again for a cash assignment fee.
Borrow the money from a private party lender at an interest rate 3-5% higher than a bank CD and secured by a first mortgage
Borrow the money from a hard money lender
Tap into a home equity or other line of credit
Refinance another property to get your down payment and borrow the balance from a lender
Bring in money partners to fund the deal. (They get depreciation and you control deal. They secure themselves with a first mortgage for the amount they have in, or if they finance it, they can lock in a second mortgage to protect themselves. You agree they get their entire principal back PLUS 15% before you split any profits from the resale of the property. You split profit 25-50% to them, the rest you.)
Find some houses that have been sold in the past. You can do this by simply searching the public records at the county recorder's office. Find houses that were recently sold to real estate investors by banks, HUD, VA, FNMA, etc. If the buyer is not an individual (i.e. a corporation or partnership), then you just hit your bulls eye.

Most likely, this company bought the property to flip it or rehab it as a real estate investment.

The deeds should give the mailing address of the new buyer. You could send them out a letter and tell them about your flipping/bird dogging business. Alternatively, give them a telephone call if they are in the book.

[Just Information]

MONEY SOURCES



Family connections / friends
Borrow against an insurance policy
Cash in your insurance policy
Finance companies
Credit unions
Employer advance
Advertise for cash
Inheritance
Personal note
Credit cards
Home improvement loans
Compensating balances
Personal property loans
Collateralized loans
Refinancing cash
Loan brokers (costly)
Buy at discount and trade to full value
Deep discounted bonds
Borrow against 401k

[Just Information]

Dear John,

Our loans are also collateral based. Thus, we lend based on the property. We have a very short Borrower's Application which I have attached for your review. In addition, we require a Property Worksheet for each loan which will need to include a repair estimate/bid. I have also attached for your review. OK, here is the NO bull details ... We will only loan up to 70% LTV based on the after-repaired value. The loan may include purchase, rehab and closing costs as long as it is 70% LTV or under.

There is a $300 appraisal fee paid at time of appraisal for an as-is and as-repaired appraisal. Prior to the appraisal, we will run comps and validate the ARV. We will inspect the property at the time of appraisal (or before), but do NOT charge a lender's inspection fee. I charge 5 points (or minimum $2500) and 15% interest-only based on the loan amount. I have absolutely NO junk fees charged at closing. All other closing costs are charged by the title company.

Payments are due monthly starting one month after closing. Repair money is held in escrow and disbursed based on a draw schedule / inspection. I charge $150 for each draw inspection which is paid when the loan is paid off. I will also evaluate the exit strategy of the borrower to make sure it makes sense. For example, I won't lend 70% LTV on a property in the "hood" when the borrowers only exit strategy is to buy, rehab and sell for full market value. On the other hand, if they are going to refinance and hold as a section-8 rental it is a different story. Let me know what you think. I would welcome the opportunity to meet with you in person, so you can put a face with a name.

Thanks,

Kyle Bush
913.940.7058 (Cell)

888.348.7377 x703 (Toll-Free)

[its my turn]

i have marketed and gotten over 150 properties being conservative here with well over 12 million in equity for real i found got and signed the deeds a quit claims whatever it took to get it sold . for about seven investors . i need backing to do my own i know i can make close to a million a yr i know you make it at the buy . help me get my owm private investors Rick