I Am So Tired Of Being Turned Down By Banks!
I have good credit and I have never missed a payment in my life. But yet banks keep turning me down for real estate loans.
I never had a problem until August which is when the banks starting tightening up.
I have some private lenders but it is obvious that I need to find more. Any suggestions?
I met a guy at my local REIA group that told me direct mail is the best way to find private lenders. So I did some research and the only thing I found on private money direct mail was a site called Private Money Postcards. Has anyone used them before?
Any other suggestions would be greatly appreciated.
[ Edited by ypochris on Date 11/20/2008 ]
thelemur, why did the the owner on the SFR only want to borrow $5K? This is advertised as a first position lien... was the $55K purchase a cash purchase? Or is s/he subordinating the existing debt (assumed to be, maybe, $55K)?
If this is/was the "real deal" then make sure you keep contact with this person for future business....
thelemur, how did you find out about these deals? Were they by word of mouth or advertised?
They were by word of mouth.
Quote:
On 2008-11-17 07:39, ITBInvestor wrote:
thelemur, how did you find out about these deals? Were they by word of mouth or advertised?
I have seen even the very experienced hard money guys get burned very badly.
On local HML had taken back 58 houses and is now finishing rehabs and renying them out. Two of their houses came up yesterday with the HML foreclosing.... their judgment was 4 times as much as I was willing to pay for the property. Now they have taken back 60 houses.
It may be tempting to invest as an HML and get 5 points and 18% interest.... but consider the downside and run in the other direction before risking your retirement money in a declining-value market.
Just my opinion, of course.
[addsig]
Use an attorney to write the Notes. Apartment buildings are a great hedge against loss in this market. The higher the foreclosure rate, the lower the vacancy rate in apartments.
[addsig]
How do I find the vacancy rate in an area? I did not know that a lower can write a note? I always thought I needed a loan (mortgage) broker to do that?
Quote:
On 2008-06-06 13:25, LeaseOptionKing wrote:
Use an attorney to write the Notes. Apartment buildings are a great hedge against loss in this market. The higher the foreclosure rate, the lower the vacancy rate in apartments.
I am in the process of looking for a private lender for a project that I have going. I would be willing to pay 15%-18% over 12 months. I am looking for $13,000. Anyone with any ideas. The project is a three flat building in Chicago. The property has a finished basement, I have four section 8 residents waiting to move in. The first three apartments will rent for $1300 per month and the basement will rent for $900.
have you checked out any of the peer-peer lending sites like proser, kiva, etc..
www.prosper.com is good for $13K. Their lender limit is $25K.
thelemur, just an observation regarding "...can I really be assured that the borrower is experienced enough to manage his project properly... What is interesting is that experienced REI who have focused on maintaining a high credit score and good business practices can still get loans via commercial lenders at rates far below the HM or pseudo-HM rates of 12-15%. If you accept a more modest 7-9% return, you would probably find lower risk, experienced REI, high net worth (>$1M, probably >>$1M) individuals who would welcome your capital.
You can direct your Self Directed IRA to buy the home and pay all costs of rehabbing and owning a house, and then sell the house on a note to the end buyer (as long as they are not related) and make the whole spread! Or you could partner your SDIRA with a local investor (or some one to do the work and pay expenses) that you have checked out thouroughly and work out any number of profit splits!