How To Handle Lenders

Comments(13)

• 
  vanrijnr24th July, 2003

  Get a signed contract with clause that'll get out if needed

• 
  vanrijnr24th July, 2003

  excuse me, I meant..
  
  Get a signed contract with clause that'll get you out if needed

• 
  josephnyc24th July, 2003

  Do you mean a contract with the lender?
  
  Are there samples of such available anywhere?
  
  Is it common to execute a contract before divulging info to a lender -- ****Must Reach Senior Investor status before posting URL's***., will most accept such a thing?
  
  Thank you!

• 
  Loan_Officer_in_Cali25th July, 2003

  You gotta trust somebody. I wouldnt worry about a lender "stealing" a deal from you. They make their money from loaning money on properties, not from "stealing" real estate deals from prospective clients.

• 
  jorge12125th July, 2003

  execute a contract, or better yet, get a exclusive option to purchase the property at whatever price you negotiate and then have it recorded. That will create a cloud on the title so any would-be purchaser will have to deal with you.

• 
  hibby7625th July, 2003

  I would gaurd and protect your deal like a hawk!
  
  If your buying just any FMV property, no big deal.
  
  If you have a motivated seller and your getting the property at 60% LTV, there's a motivated seller, and any idiot could do the deal....then some idiot (or even worse...someone savy) will.
  
  I just bought a 1.2 million dollar property at 73% LTV. EVERYONE I mentioned the deal to asked me where it was. Think I told them???? Absolutly not! I told them about the numbers and the area (area has about 150,000 people) and if they asked for the address I'd tell them an address that was about 15 blocks away.
  
  Feel free to wholeheartedly trust a loan officer who you've talked to on the phone once and you've never met. Does he have a brother, friend, roommate who's into RE? Is he going to talk?
  
  Until you find a lender who is serious and can do the deal based on the numbers that you've told him, have him sign a non disclosure agreement with a dollar amount attached for damages. Also have him sign a non-competetive agreement with similar terms.
  
  People talk and people like to have great deals dropped in their lap. Most of us would agree that FINDING the deals are the hardest part.
  
  Protect yourself my friend. Better safe than $50,000 sorry.

• 
  InActive_Account25th July, 2003

  Quote:
  On 2003-07-25 15:00, hibby76 wrote:
  I would gaurd and protect your deal like a hawk!
  
  
  Good advice hibby!

• 
  josephnyc26th July, 2003

  --------------------
  Until you find a lender who is serious and can do the deal based on the numbers that you've told him, have him sign a non disclosure agreement with a dollar amount attached for damages. Also have him sign a non-competetive agreement with similar terms.
  --------------------------
  
  That's exactly what I'll do.
  
  I should have made clear, however, that I'm not referrring to the average commercial bank's loan officer (although I'd certainly like to apply this here too), but rather private and hard money lenders/brokers.
  
  So, anyone have any samples/templates they'd share?
  
  Thanks everyone!

• 
  InActive_Account26th July, 2003

  Go to google and search for "non circumvent". You should find several to look over.
  
  Do you have a game plan on how to make this work? It will take a solid business plan to get lenders to look at it.
  
  I don't know what they look for but I do know that it is possible to do Hard Money up to 300 Mil. [ Edited by lacashman on Date 07/26/2003 ]

• 
  josephnyc26th July, 2003

  THanks -- a google search for non circumvent yielded many forms of these agreements.
  
  I do indeed have a plan -- a book about 2" thick. The financing request is currently with a hard money lender as well as a developer who owns a bank as a subsidiary.
  
  The deal is 20 story mid-town Manhattan building, being sold by an estate -- total cost for purchase, renovation/conversion to condos is $30M. When completed (24 to 36 months), there $75M in value. Tough project, but worth the effort.
  
  Thanks!

• 
  shizah28th July, 2003

  Joseph,
  
  I am a commercial/residential broker that would be more than happy to try to place this deal for you. I also have no problems with signing any disclosures or non-competes. You do not get anywhere in my business by stealing deals from clients.
  
  Regards,
  
  Mark

• 
  josephnyc29th July, 2003

  Mark,
  
  Please email me directly -- I looked in your profile, but I don't see an email address.
  
  Thank you,
  
  Joseph

• 
  shizah29th July, 2003

  Joseph,
  
  I just added my email in my profile. I just checked yours and it was not there. Here is my email just in case it is not in there.
  
  **Please See My Profile**
  
  Thanks,
  
  Mark