Hard money, or private lending, means lending capital to real estate investors, secured by the property itself, rather than buying property directly.
Log in to followI have a repeat borrower asking for a fourth loan. Existing three are separate notes, separate mortgages, 68 to 72 LTV on as-is, all in the same metro. Total exposure to him would…
I'm 30 pages into a participation agreement for a $75k slice of a $310k bridge loan and I've stopped at two sentences. First: "Participant acquires an undivided beneficial interes…
Working on my salesperson license now and a private lender I know suggested I bring him deals and take a piece of the points. He funds, I find the borrower, walk the file, and get…
I pulled $92k out of a refi on one of my small buildings and I don't want it sitting in savings for another year. A guy I know locally does 4 or 5 flips a year, mostly 1950s three…
Two lenders I've been talking to underwrite the same flip completely differently and I can't decide which one I'd rather be. The first caps every loan at 70 percent of after repai…
Borrower needs $180k on a house he's under contract for at $205k, and he wants to close in eleven days. A full appraisal in this market is running him a couple of weeks and severa…
A borrower I have known for a while asked me to look at a 40 acre parcel on the edge of a growing exurb, split zoned, no utilities to the line, and he wants a 12 month loan to car…
Working through some loan summaries and the second position loans keep paying 3 or 4 points more. A second lien on a rehab, 14 percent, 2 points, and the combined loan to value is…
Loan on my desk: $412,000 on a 6 unit brick walkup, tired but occupied at 4 of 6. Borrower is repositioning, turning units as they vacate, exit is a DSCR refi at stabilization. As…
Reading through a private lender fund's sample note and mortgage before I commit as an LP. The note has a 15 day grace period, then a written notice of default, then a 30 day cure…
A lender near me who does fix and flip paper offered me two ways in and I can't tell which one I'm actually being paid for. Option A: 25 percent of a single note. $400k loan, 11 p…
I spent years running renovation crews, so I thought the one edge I had as a lender was reading a scope. That is exactly the thing that cost me. Deal was a 1930s four bed in a sol…
Numbers first, then tell me what's wrong with them. Note A: 11 percent, 2 points, 6 month term. Note B: 12.5 percent, 1 point, 12 month term. Both $150k, interest only, paid month…
Two brokers in the last month have come back to me with the same message, which is that my quote is no longer competitive. I have been holding at 11.5% and 2 points with a 70% cap…
$228k out at 11 percent and 2 points on a full gut in a decent inner ring suburb. Interest has come in on time every month, which is the part making this hard. Borrower has burned…
Rehab deal in front of me. Purchase 240k, rehab budget 85k, so all-in cost 325k. Borrower's ARV is 430k off three comps, two of which are on a street with newer builds and bigger…
This was two and a half years ago, before I'd read anything useful. A guy I'd known for a while, done two flips, seemed competent, was short on the rehab money for a third. He nee…
Payoff wired last week on the first loan I funded on my own paper, so the numbers are fresh. Collateral was a 4 unit in an inner ring working class suburb, brick, all four occupie…
I usually borrow this money, not lend it. Sold a flip last spring, had $215k sitting between deals, and a wholesaler I've worked with introduced a borrower doing a full renovation…
Construction is what I know, so I look at these rehab loans and I can see which borrowers are lying about their budget. Thought that might be worth something on the lending side.…