I’m looking for a private money lender. I was quoted 7.75% interest by one guy. Anyone know of one?
I’m looking for a private money lender. I was quoted 7.75% interest by one guy. Anyone know of one?
[{"id": "iwsdd9e", "text": "You're about 20 details short of getting a good answer here.", "replies": [{"id": "iwsdu34", "text": "I\u2019m 2 weeks done from finishing a property I built. I built it for 204,000. 4 bed 2 bath. The property will bring in 3500 a month. I have a renter lined up. The property appraised for 405,000.", "replies": [{"id": "iwse04i", "text": "You are now 15 details from getting a good answer.", "replies": [{"id": "iwse7t3", "text": "What am I missing?", "replies": [{"id": "iwsel5m", "text": "Well, you're in a real estate sub and you haven't said anything about where the property is.", "replies": [], "depth": 5}, {"id": "iwsenda", "text": "Where are you, what do you need the money for (specifically), what is LTV of the property when finished.  Lots of things like that.\n\nIn general, a hard money loan for 7.75% is great as long as they aren't charging you more than 1-2 points in total fees.  If there are more points, the deal looks less attractive.\n\n&amp;#x200B;\n\nEDIT:  Oh, you're looking at a takeout loan?  Probably not a bad deal in today's mortgage environment.  Just make sure you can pay it off without penalty when you get to a better spot down the road.  What rate is bank quoting you?  What are differences between proceeds and rate between the two?", "replies": [{"id": "iwsf011", "text": "I\u2019m located in Sarasota Fl. LTV of property when finished if I don\u2019t include the cash out refinance is 50%. \nOk, thanks for the info", "replies": [], "depth": 6}, {"id": "ixr1dsv", "text": "&gt;In general, a hard money loan for 7.75%\n\n7.5 isn't even close to being a hard money loan.", "replies": [{"id": "ixrs7lv", "text": "I know,  but the low rate could be a smokescreen for a lot of points.", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}, {"id": "iwslrwd", "text": "What state? What are your scores?  How do you make income? When did you buy the land, when did you get the construction loan?  Have you been making payments? Who is on title? Is it rural?", "replies": [], "depth": 5}, {"id": "iwthig4", "text": "You haven\u2019t even said what you need the financing for lol. You said elsewhere you want to cash out refi, why are you preferring hard money for that?", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iwsdosx", "text": "Private money rate of 7.75 is excellent. What are the upfront costs, principal, terms?", "replies": [{"id": "iwse299", "text": "I didn\u2019t have any upfront costs because I had so much equity in the deal. 30 years. I got a construction loan from the bank. But really I\u2019m trying to see if I can get a private money lender that\u2019ll offer that rate but a higher cash out refinance.", "replies": [{"id": "iwslvz4", "text": "What is the prop worth and what do you owe? what state?", "replies": [{"id": "iwsn7fz", "text": "Sarasota Fl. Worth 430,000. I owe 204,000.", "replies": [{"id": "iwt5ltw", "text": "I've gotten loans from visio lending. They offer what I think you are looking for. My rate w them is about 7%. I don't know what rate they are offering now, it's prob higher than 7. \n\nThey do equity loans. Call them and they will let you know what kind of loan packages they offer and what might work for you.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "iwvhgy2", "text": "I\u2019ll lend to you at 14%.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iwse55a", "text": "I need to close out the loan with private money under my LLC preferably", "replies": [], "depth": 1}, {"id": "iwse5i8", "text": "Put the renter in and cash out refinance with a local credit union. You\u2019ll walk with money in your pocket, equity, and a lower interest rate.\n\nPrivate money is normally short term", "replies": [{"id": "iwt6zv7", "text": "This! Private money would have funded the build/ rehab maybe .", "replies": [], "depth": 2}, {"id": "iwuya1q", "text": "DO NOT USE Suncoast Credit Union. It\u2019ll take 9 months, the fees are ridiculous, and you\u2019ll be frustrated.\n\nSource: I know their commercial banker\u2026.", "replies": [{"id": "iwvlr2p", "text": "This would be residential though", "replies": [{"id": "iww12dh", "text": "Just as bad\u2026 They just don\u2019t have the personnel/infrastructure to loan on real estate in relation to the amount of requests they get.\n\nI\u2019m not a hater at all, I love SCU.  I have 2 auto loans there, an account, everyone should have a CU account.\n\nJust not to be used as a primary on a real estate loan if you want it done in a reasonable amount of time.", "replies": [{"id": "iww1b6h", "text": "I\u2019m surprised they made you wait that long with your preexisting relationship", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iwsea7w", "text": "Bank is only willing to go up to 70% cash out refinance", "replies": [{"id": "iwsm0gn", "text": "I can do 10 or 15% better but it's gonna be 10+% and 6 points. based on rental income. No pmi.", "replies": [{"id": "iwsmitm", "text": "6 points Jesus Christ. Do you refer deals to a guy, who refers your deals to a guy, who refers it to a guy that actually lends his own money?", "replies": [{"id": "iwso19e", "text": "It's 1.25 DSCR based on stated rent.   No income verification. 680+ ficos.  The fees are what the market will bear.  I was a lender rep for them for a bit.  Now I just refer them over. NOO INV non-RESPA non-TRID", "replies": [], "depth": 4}, {"id": "iwtdhfc", "text": "Do you not realize you're communicating with THE ultimate salesman?", "replies": [], "depth": 4}], "depth": 3}, {"id": "iwsmyi7", "text": "Thank you. But I\u2019m going to shop around. That\u2019s a bit too much", "replies": [], "depth": 3}], "depth": 2}, {"id": "iwvkcul", "text": "I\u2019d recommend a fixed rate bank loan over a hard money loan in this environment. This is not the time to be leveraging yourself up with expensive debt. Protect your downside.", "replies": [], "depth": 2}], "depth": 1}, {"id": "iwsebmf", "text": "I\u2019m looking for at least 75% cash out refinance", "replies": [{"id": "iwspvcx", "text": "Can you get a heloc on the house at a better % than a cash-out term loan?", "replies": [], "depth": 2}], "depth": 1}, {"id": "iwsefe0", "text": "I\u2019m located in Sarasota Fl btw", "replies": [], "depth": 1}, {"id": "iwseizv", "text": "I\u2019m building a triplex next. That\u2019s why I need the extra money", "replies": [{"id": "iwslwxe", "text": "Would you mind sharing your lender via PM? I'm in Tampa. Thanks.", "replies": [], "depth": 2}], "depth": 1}, {"id": "iwsheun", "text": "7.75% interest rate on a 75% cash out? Seems like a great deal in todays environment. Do you mind sharing the lenders info over a PM?", "replies": [{"id": "iwtcbnw", "text": "Someone loop me in with the details", "replies": [{"id": "iwti5m9", "text": "Same", "replies": [{"id": "iwtkx3g", "text": "Also same", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iwsnhva", "text": "You\u2019re at 50% ltv and shopping sub 7% from private money? Hmmm. Count your blessings and refi out of the 7% private when rates improve. Do the math. Do 5% and 7%. How much interest would you pay for 12-24 months? Grab the cash and build your triplex sooner than later.", "replies": [], "depth": 1}, {"id": "iwssv2o", "text": "I actually have a lender that would write that at 75% LTV.\n\nI would need more details to confirm, but it seems like a good project.", "replies": [], "depth": 1}, {"id": "iwsvn68", "text": "Why is this in commercial real estate when it\u2019s a custom house you built???", "replies": [], "depth": 1}, {"id": "iwt2m42", "text": "https://cloverleaflending.com\n\nI am in specialty tax and sometimes our clients need commercial loans in this is the only place I send them the other guy sucked ask for steve. He's the owner tell him Sarah sent you and he will take great care of you!!", "replies": [], "depth": 1}, {"id": "iwt5r1n", "text": "I know one. PM me and I can send you a contact.", "replies": [], "depth": 1}, {"id": "iwtkikz", "text": "7.75% private money is excellent. Commercial money is in the mid to high 6\u2019s.", "replies": [], "depth": 1}, {"id": "iwtnxnx", "text": "7.75% isn\u2019t hard money\u2026 that\u2019s almost bank financing at this point.", "replies": [{"id": "iwvk7xv", "text": "Hard money doesn\u2019t refer to the rate it refers to lending against a \u201chard asset\u201d with less focus on the borrower or other typical credit items. Technically a hard money loan could be any rate.", "replies": [{"id": "ix03lq0", "text": "borrowers don\u2019t get hard money loans if they can tap traditional financing sources. Hard money loans are typically made to more risky borrowers and therefore have significantly worse terms (points in/out, high rates, short tenor, etc). Even before the current credit cycle, hard money loans were typically high singles to mid double digit rates (when bank financing was &lt;4%). Bank financing is now 6%+ and at much much lower leverage levels than before.\n\n7.75% is mis priced for a typical hard money loan.\n\nSource: I\u2019ve been doing this for 15 years and have closed $3.5B+ of mortgages, mezz loans, preferred equity, JV equity deals.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iwtr4yh", "text": "New city financial", "replies": [], "depth": 1}, {"id": "iwuu8rd", "text": "I am a hard money lender. DM me.", "replies": [], "depth": 1}, {"id": "iwv4547", "text": "Not sure if you\u2019re still weighing options \u2014 but I know someone who is lending with good rates. DM if you\u2019re interested", "replies": [], "depth": 1}]