hard money lending: For all you real estate investors - a little humor: Very funny post about buying a castle
- 05/23/11 12:35 AM
Honestly, I think only real estate investors will like this, but it had me falling out of my chair laughing. Biggerpockets.com is a website devoted to real estate investors. An investor posted on the forum looking for a hard money lender to finance a castle. Since that's my business, I of course looked at the post, even though I work in MA and NH only. The castle thing got my attention, if only as a curiosity. Well, there are 7 pages of comments, and eventually the moderator cut off further comments, but if you keep reading all the way through, it's … (4 comments)
hard money lending: Financing your real estate rehab project with no skin in the game
- 05/13/11 12:33 AM
There is a new program for real estate investors that can provide as much as 100% financing for rehab projects. Just to be clear, I provide financing to real estate investors in MA and NH, not to homeowners. A typical project would be a house in disrepair, whether a bank owned REO or a property that had deferred maintenance for whatever reason. This program is not for homeowners. The investor buys the property, and invests significant money in rehabbing the house to make it ready for resale to an end buyer. Frequently, they use a hard money loan to fund the … (2 comments)
hard money lending: How to use 200 words when you can use 20
- 04/30/11 10:11 AM
Have you ever had someone write or speak in such an obscure manner that you don't even know what they were trying to say? I lend private funds to real estate investors in MA and NH, and receive many inquires, both by phone and email, from both new and seasoned investors. Private lending is much in demand right now, so I sift through many inquiries daily, frequently from people who are unfamiliar with the type of lending we do. (Yes, I know these are called leads, and I am happy to get them!) This one was pretty funny, because it was so carefully crafted … (1 comments)
hard money lending: Why does the agent leave the lower priced comps out of the CMA?
- 03/27/11 12:56 AM
When a real estate investor buys a distressed property with the intention of rehabbing and reselling to an end buyer, those investors are frequently not agents, but they often work with agents to purchase the property. They also get CMA's from those agents to evaluate the end value of the property after rehab. The end value is the beginning point of evaluating the rehab budget and how much they can afford to pay for the property. Their offers are not usually based on the list price, they are, and should be, based on the end price, working backwards toward the offer … (4 comments)
hard money lending: Which comes first, the deal or the funding?
- 02/24/11 08:53 AM
I saw a post the other day from an investor who was told he had to get the contract (deal) before he could get funding. Another poster disagreed, and told him that wasn't true. In the interests of not hijacking the thread, I thought I would post some information that might be useful. It is very desirable to line up funding for your deal before you sign and contract and put up your earnest money. If you are using conventional residential funding for that deal, it is easy, since pre-approvals are the norm in the conventional residential financing world. If you … (1 comments)
hard money lending: Lending to real estate investors - last in the series
- 02/22/11 12:00 AM
Part 7 in a series of 7 posts Ok, we're getting down to the last three questions here. Should I form an entity to lend? It is not the same thing to lend as to borrow, so the considerations for lending aren't the same as for borrowing. Even though we can't lend to end homeowners, and lend to commercial entities only, we don't have to be a commercial entity to lend. The issue here is about liability protection. So once again, consult with your attorney about the liability incurred in lending, and the two of you should discuss together whether you … (0 comments)
hard money lending: Lending to real estate investors - more considerations to protect yourself
- 02/17/11 11:31 PM
Part 6 of a series I'm continuing a discussion of lending money to real estate investors. My company lends money exclusively to real estate investors in a specific geographic area. This allows us to be local to any property used to collateralize the loan, stay on top of legislative changes through our network of local attorneys and professionals, and to understand local trends, since all real estate is local. How do you protect yourself from fraud or incompetence? First of all, know who you are dealing with. If you are lending directly to an investor, ASK AROUND! It's amazing to me … (0 comments)
hard money lending: Lending your money to a real estate investor - how to choose
- 02/14/11 03:27 AM
Part 5 of a series First, let's define a real estate investor, for purposes of this series of posts. Buying real estate to hold for income, or buying real estate to resell - both of these are called real estate investors. Also, wholesalers, who get properties under contract and then assign the contract. We're not going to get into the debate about whether these people qualify to be called "investors", I'm simply defining the word for my purposes. For my purposes, a financial investor or lender is the person putting up the money. So I'm differentiating between a real estate investor, … (0 comments)
hard money lending: Lending is hands-off real estate investing
- 02/11/11 12:10 AM
Part 4 in a series Lending money to real estate investors can be a lucrative way to participate in a project without running the project yourself. It can lessen your risk, because of where you stand in the line of people waiting to get paid. First, lets make it clear we are talking about real estate investment deals here - not a homeowner purchasing a home to live in. The real estate investor will probably sell to an end buyer, but a lot happens before that. Irving Investor is going to buy a property in disrepair, using some of his own … (0 comments)
hard money lending: Lending, borrowing or buying? Which is for you?
- 02/04/11 06:53 AM
Part 1 in a series I come into frequent contact with people wanting to make the jump into real estate investing, but not knowing where to start. I'm on the Board of several Real Estate Investor Associations, and co-founded one of them, so my network includes many new investors. Sometimes they ask where they can find deals. (That's the mother lode, by the way. It's sort of like asking Coca-Cola for their formula.) Finding deals- really good deals, I mean - is the skill that investors need to cultivate. Great deals are found off and on market. They are frequently found … (1 comments)
Honestly, I think only real estate investors will like this, but it had me falling out of my chair laughing.
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