OfflineI went out and got a property under contract, then my "private lender" turns out to be less than honest. I'm looking for $65K for 12 months, I'll pay back $78K, or 20% simple interest. I'm open to almost anything, as I don't want to lose this deal. Thanks for reading this.
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What was your lender dis-honest about? The percentage or are you wanting to pay someone 20%. I'm reading it like you are offering to pay 20%.
David Boisvert
George, have you tried getting a hard money loan?
Raymond
Hi, guys, thanks for responding to my post. David, I AM looking to pay 20%. I will do nearly anything to avoid losing this deal. I had put an ad on Craig's List looking for investors. A couple of folks who responded were just curious, but one guy sounded legit. We exchanged e-mails and phone calls, and even met for dinner to make sure we were on the same page. He told me to get the property in question under contract and we'd get to the closing table ASAP. Now, it's,like he vanished into thin air- even his phone number is disconnected.
Raymond, I'm trying a HML now, but there are so many hoops to jump through and fees involved that I don't think I'll be able to get it done in time. I hate to lose this deal, because the resultant cash flow would be insane!
George, the good thing about a hard money loan is that if the numbers work or if the deal is really awesome you can get the loan quickly. I would try this approach but also keep seeking somewhere else. Good luck!
Raymond
Raymond,
Can I ask what hard money lender you use? The one I contacted wants to send out independent "evaluators" to evaluate the property- after I give him $550.00, of course. Then, if they think it's a good deal, I need to give them 5 points PLUS 16% interest! And they say that this process could take six to eight weeks. They have a tremendous web presence, although I can't see how anyone could actually use them.
Perhaps you should forget about this deal. Sounds like the buyer is gone and the money loan is outrageous
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I may be missing something... but if this is a deal and you cannot fund it.... isn't that the poster child for an assignment/double close?
If you have a true deal here, finding a buyer is the easiest part there is! Go to a REI group in your area and start there. If you have it in the contract that the contract is assignable then you can easily assign it for a profit. If not you need to look into transactional funding in order to double close to your end buyer.
Glen
"The man who acquires the ability to take full possession of his own mind may take possession of anything else to which he is justly entitled."
-Andrew Carnegie
"Man often becomes what he believes himself to be. If I keep on saying to myself that I cannot do a certain thing, it is possible that I may end by really becoming incapable of doing it. On the contrary, if I have the belief that I can do it, I shall surely acquire the capacity to do it even if I may not have it at the beginning."
– Mahatma Gandhi
Tammy and Glen,
Thanks so much for posting. I guess I must not have been clear enough in my original post. My private money lender turned out to have no money to lend! So, I'm trying to replace him, and I want to buy this property for myself! I am willing to pay a private lender 20% for the privilege of using his money. If I buy the property for cash, I found a bank that will do a cash-out refinance and I would then pay my investor back his money, plus the interest. Everybody wins. Am I making any sense yet??
George,
It is possible that your RE agent might actually be a valuable source for this sort of information. If you have a good RE agent they mostlikely have contact with lenders/banks. It couldn't hurt to ask!
As I mentioned, if you have been to a real estate investing group in your local area, you may very well meet someone there who is a private money lender or who could refer you to someone who would give you the loan.
Finally, have you considered other options of purchasing the property? For example, do you have an IRA you could use to invest, or 65k worth of equity in your home that you could tap into with a HELOC?
There are many methods of obtaining funding that are covered more indepth in Dean's book, Profit From Real Estate Right Now! If you happen to have that too. I don't claim to be any sort of expert in this matter, but I hope I helped.
Best of luck,
Glen
"The man who acquires the ability to take full possession of his own mind may take possession of anything else to which he is justly entitled."
-Andrew Carnegie
"Man often becomes what he believes himself to be. If I keep on saying to myself that I cannot do a certain thing, it is possible that I may end by really becoming incapable of doing it. On the contrary, if I have the belief that I can do it, I shall surely acquire the capacity to do it even if I may not have it at the beginning."
– Mahatma Gandhi
Hey, Glen,
Thanks again for responding to my post, and for all the great tips. I actually may have found an investor in Chicago from Craig's List willing to take my 20%! We exchanged e-mails, then phone calls, and finally I sent him a presentation on the property. He seems to have liked what he saw. I'm trying not to get too excited. I'll let you know how it works out. Thanks again.