Where to find short term lender for property acquisition

Financing, Hard Money Lenders, Private Money
1

One of our partners is looking for a short term loan that is outside of our lending profile.

The sponsor is an experienced re developer. They are acquiring a 250 unit multifamily apartment in Nashville. They are looking for a short term loan of $125,000 for 60 days at 14-15% including origination fee. It is for the earnest money deposit that will be sitting in the escrow with a title company. The sponsor is putting in half and they are looking to finance the other half.

Any suggestions on where I should look to help out our sponsor?

The company I am working for is a real estate crowdfunding startup, so it is difficult for us to provide financing for that short of a term.

Kyle

2

Hi,

If I buy an apartment building I am expected to put up the earnest money deposit in escrow?

So if you have an experienced real estate developer who is an existing presumable profitable business wouldn’t they put up there own earnest money deposit?

So it sounds like to me that there is a little miscommunication between the partners and the sponsor!

Is this a “No Money Down” deal for the partners? It kind of sounds that way?

I just don’t buy property I can’t afford and I certainly don’t write contracts without expecting to provide some kind of earnest money deposit!

            GR
3

I have no experience actually doing this, but I do have experience searching the Internet for such things…

Craigslist or google… “hard money loan”… you should be able to find it in about 3 seconds.

You could a loan term that is longer than 60 days and just pay it back after 60 days, which would in effect mean you are paying less on the loan.

Or, if the business has been profitable for so long, wouldn’t they be able to qualify for loans based on their tax returns?

Why seek such a short term loan with such a high rate when there as many better options out there?