Soliciting Seasoned Investors Advice in How to Chose The Best ....

Financing, Hard Money Lenders, Private Money
1

Hello,

I’m a new Real Estate Investor and have never used a HML. I want to use a Hard Money Lender to help me purchase a very low priced foreclosure home that has a high property value range. The house auction/sale date is 6/19/07. The price is less than $10K. My question is how do I determine the best HML to use? What are the dangers to look out for?

Your suggestions are welcomed.

Thanks!

2

Thank you very much for your response MsClosedLoans. I’m not sure what type of repairs are needed yet but I’m planning to find out. The house is located in Washington, DC. I would prefer a personal line of credit for this type of investment project anyhow, therefore, I have to do some shopping around for that too. I’m going to drive by the place tomorrow and get a better look at the property. Thanks!
Joyce

3

joyawilli,
I have called many, many HML’s. I’ve never found one that will lend under a $30,000 purchase price. Plus they don’t want the repairs to be more than the purchase price. A line of credit is probably a more realistic method to funding this purchase and rehab.

MsClosedLoans,
If you have any lenders that will do loans of that size I wouldn’t mind a PM. Thanks!

4

Thanks Iron Range! :smile

5

For that low of an amount you may just need to find a private investor to come in on an equity split or something like that , to secure the investor’s money he can put a lien on the property for the amount of his part of the equity until the rehab is done then he removes the lien you both sell and split the profits.

6

There are HML who lend under 30k (I’m one of them). If the LTV is good, the price makes no difference. I would rather have 6 loans out there at 20k a piece, than one for 120k. Depending on the situation, the ROI can be greater (I’ve done a last minute deal at 40% ROI), and your risk is spread out.

7

I too would be interested in hearing from HMLs that offer loans on small loan requirements (10K and up)…

Feel free to PM me with further details.

Regards,

Scott Miller

8

Hello mw,

I would love to find out what type of loans you offer for the small projects that I am considering. Please feel free to send me a message.

Thanks
Joyce