Can This Be Done?
I have a new house that is being built right now and will be done in DEC. I have been in contract for over a year @ 1.1 million. The model is selling now @ 1.6. I am being relocated to a new state for my job. I have a 25K deposit on the house and want to know if there is a way to capitalize on the equity in the house. I have heard of a DOUBLE END CLOSE...where I can bring in a buyer say @ 1.4 and have them close on my original close date and take the difference between 1.4 and 1.1. IS THIS POSSIBLE?
Yes, it is possible if the builder allows it. You need to talk to your lawyer. Good luck.
Billinseattle:
Where would an investor find a credible list of investors to market a reg-d to??
I talked to a local HML that has about 7 million and he puts all the properties in his name. i.e. if I use hime he buys the property and then I do the work, sell the house, and at closing he gives me the difference.
[addsig]
Stock Pro – did the guy doing HML take title solely to the property or jointly with the other guy when they worked out that deal for the rehab loan?
I agree with most of this, but it does seem if you venture too far away from a couple of loans to your buddies that you end up watching your back to insure you have followed all of the State AND Federal rules – there has got to be some good, quality information out there to point the way for us – Anyone willing to share a good book or site with the group?
Thanks --
He took title soley, and has done over 148 properties last year this way.
This investor just sends him an invoice for repairs in the amount over and above the cost of loan and HM fees.
[addsig]
To further these thoughts -
Is your guy floating his "own" money ($7Million)?
Or has he put some type of pool together?
What are his typical fees?
He appears to have figured out a simple way to work that process.
No he is not using his own money soley, he may have a third in there of his own but mainly uses that of his associates and friends.
He typically charges 3% a month though if you are known to him he may charge half that. and a couple of points.
I charge 12-15% on firsts and up to 40% on seconds that fall into my value requirements.
Randall
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Actually I am not soliciting here on the site
I suggest you try someone local in Portland or the Oregon City area that may feel good about lending in that valuation rannge. I personally never lend over 75% ARV. The lenders tab on this site may have someone that can help as well.
[addsig]
There are no limits in statute in Utah regarding usuray rates. However you need to stay in the enforceable limits should you go to court <24% on firsts and <40% seconds...
Utah is a little different than the NW but if I understand you right only the "owner occupied" residential loans are highly regulated.
Investors that are buying and fixing to flip with HM would not fall under that rule??
[addsig]
Thank you John, so an acceptable avoidance of the Audited Financials and requirements that go with a ML license is to have the borrower form an LLC or some type of legal entity? As far as lending to individuals have you heard anything in regards to a threshold limit on the number of loans per year?
Hey Guys,
Quick question. How is a hard money lender, like mezzanine financing? Would a hard money lender do a 3-year term @ 15% - 20% APR?
-Angel
Hard money lenders will do "anything" providing there is security, and a large return on the investment. You just need to hook up with the right one. I have done those in the past in my area. I know that others would too..
[addsig]
Not sure if this applies, I do not know enough about hard money lending and I do not have enough patience to read the whole thread .... but ... my hard money lender brokers for other individuals. He always signs the note and mortgage and then does an assignment of mortgage to the individual.
Obviously, my hard money guy only does non owner occupied loans. I do not believe that he is licensed.
Quote:
On 2005-09-19 13:48, bgrossnickle wrote:
Obviously, my hard money guy only does non owner occupied loans. I do not believe that he is licensed.
Interesting. If he is not licensed (can you ask him?) does he agree with my analysis (a few posts above)? What is his understanding of the legalities of lending in FL, and why?[ Edited by 4e6zbi102 on Date 09/20/2005 ]
He is not licensed. I have asked him before about lending to home owners in foreclosure - you know they all want to keep the house. He told me that the lending requirements in FL for owner occupied high interest loans are very specific and if you do not do everything just right, that the mortgage could be found to be invalid and legal aid would have a field day with you and the penalties are amazing. That is why he will only lend on investment houses.
Brenda
He only charges 3% not a lot of money.. How is he making money -- on points.. How many points does he charge..
3% monthly is quite a lot and not uncommon
[addsig]
3% per month is a lot on real estate. APR is over 36%