Hard Money roadblock

Member

Posts: 63

Joined: 2008-12-07

Points: 196

Offline

Show Me The (private) Money

Mario,

Jason is correct---forget the HM guys they have become greedy. Private money is much easier to get than you might know, you just need a good mentor/program. I found these two programs to be extremely beneficial especially the first one.

---1. www.privatemoneyblueprint.com/vip . These guys are very good and they have a great power point presentation that makes it easy to grasp. Click on now and they will walk you through some of their deals on video.

---2. www.privatelendingmadeeasy.com . This is Alan Cowgill's site and he has some great products.

I think your money is better spent on learning how to attract the funding. What's the point of learning the latest (out-dated) new-fangled techniques if you can't get them funded. In today's market you can find deals in your sleep, these two sites will show you how to fund them and get them before anyone else does. The credit crunch is only going to get worse so if you want to stay in the game---I suggest you get cracking!!!

Here is a tip, advertise (or solicit family and friends) for 401K money it is the easiest private money to score. Most people have one, and most are very nervous about where it's invested. Show them a better, higher return, and safer investment, one backed by real estate and a mortgage. Most people don't know that they can borrow against their 401K up to 50% or $50K at 5% interest with 5 years to pay it back, and there are no additional tax liabilities. That's how I approach it. Show them that you are offering them a better investment than the one they currently have, and that you're not just borrowing their money. You can also make them equity partners, and give them a piece of the action. It is much easier to attract an equity partner than a debt partner. Oh, and if you do advertise beware of the pesky SEC. Those two sites will teach you how to stay in compliance with their guidelines.

Here is another suggestion. Form an investment LLC and state in the operating agreement that the LLC can accept funds from self-directed IRA accounts. You can then co-mingle those accounts with discretionary funds (non-retirement money) and pool them together and invest in commercial properties. You will need a trustee to set that up, but it is very easy to do. This way your friends and family don't have to borrow against their retirement accounts. Some are uneasy with doing that, although it's much easier to do.

I hope that helps some.

southstar

__________________

KNOWLEDGE FUELED BY EMOTION EQUALS ACTION, BUT IT IS ACTION THAT ENSURES RESULTS.

Login to post comments

Posted on: Sat, 08/22/2009 - 15:49 #7

YURI77

Senior Member

Posts: 475

Joined: 2009-03-18

Points: 1549

Offline

Thank you guys

I got more info on this thread then anywhere else.
THANKS!!!

__________________

-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --

Login to post comments

Posted on: Sat, 08/22/2009 - 19:34 #8

Indiana-Joe

DG Superstar / Mentor / Success Coach / Author / CPA / Motivational Speaker

Posts: 6305

Joined: 2009-04-28

Points: 21179

Offline

DG Members,

Thanks for sharing all this HML information. I am sure other members will find this information useful. The key to any problem is keep pushing forward to you find a solution. That makes us all better prepare for the next deal! Good luck. Believe and Achieve! - Joe

__________________

YOU TUBE CHANNEL - Follow me on my You Tube Channel at Joe Jurek Real Estate Investing Adventures
https://www.youtube.com/channel/UCiko62V79zLKX_owbirAYNA

TWITTER - Follow me on Twitter at Joe Jurek CPA
Joe Jurek CPA
https://twitter.com/JoeJurekCPA

Login to post comments

Posted on: Sat, 08/22/2009 - 21:42 #9

pdawg

Member

Posts: 33

Joined: 2009-04-07

Points: 106

Offline

hard money

hey this is pdawg ,from what nathan street said on the edge program that if you ask any lender if there loaning 100% they'll probably tell you no, but if you find out what percentage hard money lenders are loaning at, like 65 or 70% of the arv, then if you find a property say at 50% of it's arv hard money should cover your purchase, plus some.

Login to post comments

Posted on: Sun, 08/23/2009 - 02:10 #10

Member

Posts: 19

Joined: 2009-07-01

Points: 68

Offline

Hard Money

65%-70% ARV is all good and fine like you said when you find a 50% FMV deal, but these lenders are still requiring at least 10% of FMV down !! Plus the fees and points. Not to mention most will not even consider loan amounts for less than $250K.

So far I have found only two from any of the posted (not just those on the DG site!) list of HML's that will even do loans for less than $100K. Several on those same lists are not even in business any longer. And the list gets even shorter for those doing business in my state !!! Another thing I have found is that after I have submitted my request, I usually get a request for even more info, then............Nothing. No response, No..Yes or No.......just nothing.

Just so you don't think I'm being unrealistic. I have a 790 credit score, money in the bank, and I have been a contractor doing business for 30 years. I have only 10 more business days to find financing on a Probate/Rehab/Flip deal I locked up at about 48% of FMV.

Wish me luck.........I intend to hit the ground running come Monday. But like others have said in this forum today, enough for now. Sunday will be a day of rest.

Marcus

Login to post comments

Posted on: Sun, 08/23/2009 - 05:55 #11

RickM

Site Regular

Posts: 197

Joined: 2009-06-26

Points: 642

Offline

I have a couple hml

I know A couple of hard money lender that lend 80 to 90 ltv and arv.
just pm me if you want their contact info.
And also i look for them in my local sunday paper.

Login to post comments

Posted on: Sun, 08/23/2009 - 17:14 #12

Member

Posts: 19

Joined: 2009-07-01

Points: 68

Offline

I have a couple hml

ricardo....I sent you a PM

Marcus

Login to post comments

Posted on: Tue, 08/25/2009 - 02:09 #13

DG Superstar

Posts: 1620

Joined: 2008-07-17

Points: 5437

Offline

Here are a few i found.

1ST American Secured Capital
HML Loan Type Residential and Commercial
Lending Area CA and NV
Contact TJ
Address 300 West Grand Avenue, #300
City, State, Zip Escondido, California, 92025
Phone 760-802 9630 760-802 9630
Fax 760-546-3001
Email TJ@300GNI.com

1st California Hard Money
HML Loan Type Residential and Commercial
Lending Area CA
Contact Mike Sanders
Address 4229 Ocean Blvd, Suite C
City, State, Zip San Diego, California, 92109
Phone 619-318-0710 619-318-0710
Web Site 1stcalhardmoney.com
Email cashquik@****

1st Equity Lending Corp.
HML Loan Type Residential and Commercial
Lending Area CA
Contact Joseph Perez
Address 1026 Marion Drive
City, State, Zip Glendale, California, 91205
Phone 818-553-3829 818-553-3829
Fax 818-553-3656
Web Site www.betterloansandrealty.com
Email joseph.perez7185@sbcglobal.net

1st Quick Funding
HML Loan Type Residential and Commercial
Lending Area Nationwide
Contact Ray Shapiro
Address 222-15 Jamaica Avenue
City, State, Zip Queens Village, New York, 11428
Phone 516-204-7770 516-204-7770
Fax 516-224-7425
Web Site www.1stquickfunding.com
Email admin@quickfundllc.com

All California Home Loans
HML Loan Type Residential and Commercial
Lending Area CA
Contact Chris Goulart
Address 655 English Oak Court
City, State, Zip Brentwood, California, 94513
Toll Free 877-462-3422 877-462-3422
Web Site www.aboutcaliforniahomeloans.com/private-money.html
Email cgoulart@aboutcaliforniahomeloans.com

Atlanta Private Lending, LLC
HML Loan Type Residential and Commercial
Lending Area GA
Contact James Melton
Address 1303 Hightower Trail , Suite 101
City, State, Zip Sandy Springs, Georgia, 30350
Phone 770-354-1899 770-354-1899
Fax 770-809-5060
Web Site www.atlantaprivatelending.com
Email reiclub@atlantaprivatelending.com

Blazevic Funding Group
HML Loan Type Residential and Commercial
Lending Area Nationwide Except AK & HI
Contact Steve Blazevic
Address 16224 N. 38th Street
City, State, Zip Phoenix, Arizona, 85032
Phone 480-248-3868 480-248-3868
Fax 602-445-9919
Web Site www.BlazeVicFunding.com
Email stjepan@cox.net

BlueWater Funding, LLC
HML Loan Type Residential and Commercial
Lending Area DC, DE, MD, NC, NJ, NY, PA, VA, W.VA,
Contact Neil Siman
Address 4925 St. Elmo Avenue
City, State, Zip Bethesda, Maryland, 20814
Toll Free 866-551-2583 866-551-2583
Phone 301-656-6566 301-656-6566
Fax 240-766-0609
Web Site www.bluewaterfundingllc.com
Email info@bluewaterfundingllc.com

Brookview Financial, Inc.
HML Loan Type Residential
Lending Area AL, CA, CO, CT, DC,DE, FL, GA, IL, IN, KY, LA, MA, MD,ME,MI, MN, MO, MS, NH, NJ, NC, NM, NY, OH, OK, PA, RI, SC, TN, TX, UT, VA,WA, WI
Contact Steve Petriella
Address 2321 Whitney Avenue
City, State, Zip Hamden, Connecticut, 06518
Toll Free 877-734-2211 877-734-2211 ext. 350
Phone 203-230-8500 203-230-8500
Fax 203-248-1771
Web Site reiclub.com/hml
Email rehabs@brookviewfinancial.com

California Hard Money
HML Loan Type Residential
Lending Area CA
Contact Neill Phillips
Address 8574 Alpine Avenue
City, State, Zip La Mesa, California, 91941
Phone 619-920-7685 619-920-7685
Fax 619-819-8824
Web Site www.californiahardmoney.biz
Email sdreloans@****

Capital Trust
HML Loan Type Residential and Commercial
Lending Area MA
Contact Dan Burke
Address 404 South Huntington Avenue
City, State, Zip Boston, Massachusetts, 02130
Phone 617-971-9700 617-971-9700
Fax 617-983-3541
Web Site www.ecapitaltrust.com
Email danburke@ecapitaltrust.com

CT Capital
HML Loan Type Residential and Commercial
Lending Area FL, OH
Contact Matt Martin
Address 6300 NE 1st Avenue, Suite 200
City, State, Zip Fort Lauderdale, Florida, 33334
Phone 954-895-0615 954-895-0615
Fax 954-351-0996
Web Site www.ctcapitallending.com
Email mmartin@ctcapitallending.com

Delta 8 Capital
HML Loan Type Commercial
Lending Area OK, TX
Contact Carolyn Apodaca
Address 508 Liberty Court
City, State, Zip Colleyville, Texas, 76034
Phone 469-964-6837 469-964-6837
Fax 817-796-2875
Web Site delta8capital.com/
Email carolyn@delta8properties.com

Dominion Financial Services, LLC
HML Loan Type Residential
Lending Area MD
Contact Jack BeVier
Address 1029 N Calvert Street
City, State, Zip Baltimore, Maryland, 21202
Phone 410-230-0123 410-230-0123
Fax 410-727-4306
Web Site www.BaltimorePrivateLending.com
Email jack@thedominiongroup.com

EDC Capital Partners
HML Loan Type Residential
Lending Area AL, DC, GA, KS, MD, MO, MN, NC, NJ, PA, SC, TX, VA
Contact Shawn Skiff
Address 4640 Shore Drive, Suite 113
City, State, Zip Virginia Beach, Virginia, 23455
Phone 757-460-9096 757-460-9096
Fax 757-460-4079
Web Site www.equitydevelopmentcorp.com/
Email info@equitydevelopmentcorp.com

Genesis Capital Mortgage
HML Loan Type Residential
Lending Area CA
Contact Brittney Fairweather
Address 516 Pennsfield Place #207
City, State, Zip Thousand Oaks, California, 91360
Phone 805-496-8002 805-496-8002 x202
Email brittney@gencapmortgage.com

Great Central Mortgage Acceptance Co., LTD.
HML Loan Type Residential and Commercial
Lending Area TX
Contact Chris ****son
Address 507 W. Rhapsody
City, State, Zip San Antonio, Texas, 78216
Phone 210-979-6683 210-979-6683
Fax 210-979-0989
Web Site www.texas-hardmoney.com
Email chrisd@greatcentralmortgage.com

Hard Money Bankers, LLC
HML Loan Type Residential and Commercial
Lending Area DC, DE, MD, VA
Contact Jason Balin
Address One Sanford Ave .
City, State, Zip Baltimore, Maryland, 21228
Toll Free 877-991-1500 877-991-1500
Phone 410-878-7090 410-878-7090
Fax 866-859-6019
Web Site www.hardmoneybankers.com
Email jason@hardmoneybankers.com

Investor's Capital Funding, LLC
HML Loan Type Residential and Commercial
Lending Area TX
Contact Rob Champion, Tom Wagner
Address 5850 Town and Country Blvd., Suite #203
City, State, Zip Frisco, Texas, 75034
Phone 214-377-4799 214-377-4799
Fax 866-610-7547
Web Site www.txhardmoneylending.com
Email info@txhardmoneylending.com

Ionian Capital
HML Loan Type Residential and Commercial
Lending Area CA
Contact Steve Mason
Address 925 Lakeville Suite 321
City, State, Zip Petaluma, California, 94952
Toll Free 800-901-2111 800-901-2111
Phone 707-769-4731 707-769-4731
Web Site www.westcoasteloan.com
Email info@westcoasteloan.com

Lending Associates
HML Loan Type Residential and Commercial
Lending Area AZ, CA, NV, OR, WA
Contact Edward Spooner
Address 16787 Bernardo Center Dr, Suite 11
City, State, Zip San Diego, California, 92128
Phone 858-487-3001 858-487-3001
Fax 858-487-3002
Web Site www.lendingassociates.net
Email Info@lendingassociates.net

LoanSum, LLC
HML Loan Type Residential and Commercial
Lending Area St Louis, Missouri
Contact Greg Daney
Address 11821 Adie Road
City, State, Zip St Louis, Missouri, 63043
Phone 314-971-7999 314-971-7999
Fax 314-995-8515
Web Site www.loansum.com
Email customerservice@loansum.com

PeachStone Captial
HML Loan Type Residential
Lending Area GA
Contact Wade Munday
Address 4780 Ashford Dunwoody Road, Suite 513
City, State, Zip Atlanta, Georgia, 30338
Phone 404-421-5578 404-421-5578
Fax 404-806-6133
Web Site www.AtlantaHardMoneyLoans.com
Email wade@AtlantaHardMoneyLoans.com

Piedmont Capital Lending, LLC.
HML Loan Type Residential and Commercial
Lending Area GA
Contact David Doughty
Address P.O. Box 1578
City, State, Zip Roswell, Georgia, 30077
Phone 678-292-6984 678-292-6984
Fax 770-807-0232
Web Site www.piedmontcapitallending.com
Email info@piedmontcapitallending.com

SDC Capital Funding
HML Loan Type Residential and Commercial
Lending Area AZ, CA
Contact Shawna Phelan
Address P.O. Box 572559
City, State, Zip Tarzana, California, 91357
Phone 818-342-9555 818-342-9555 x202
Fax 818-342-1030
Web Site www.sdccapitalfunding.com/
Email shawna@silverbergdevelopment.com

Streamline Funding Group
HML Loan Type Residential and Commercial
Lending Area TX
Contact Minka Anderson
Address 8200 N. Mo Pac Expressway, Suite 320
City, State, Zip Austin, Texas, 78759
Toll Free 877-250-8787 877-250-8787
Phone 512-250-8575 512-250-8575
Fax 512-250-2085
Web Site www.streamlinefunding.com
Email info_rei@streamlinefunding.com

Sunrise Financial
HML Loan Type Residential and Commercial
Lending Area CT
Contact Neal Chorney
Address 205 Church Street, 3rd Floor
City, State, Zip New Haven, Connecticut, 06510
Phone 866-360-6418 866-360-6418
Fax 203-643-2214
Web Site www.sunrisefg.com
Email admin@cthardmoney.com

The Norris Group
Lending Area CA
Contact Craig Hill
Address 6391 Magnolia Avenue, Suite C
City, State, Zip Riverside, California, 92506
Phone 951-780-5856 951-780-5856
Fax 951-780-9827
Web Site www.thenorrisgroup.com
Email craig@thenorrisgroup.com

Valuation Mortgage Capital
HML Loan Type Commercial
Lending Area FL, SC, GA, NC
Contact Tim McLeod
Address 515 East Las Olas Boulevard, Suite 860
City, State, Zip Fort Lauderdale, Florida, 33301
Phone 954-636-2619 954-636-2619
Fax 954-793-4783
Web Site www.valuationmortgage.com
Email tsm@valuationmortgage.com

Zinc Financial, LLC
HML Loan Type Residential and Commercial
Lending Area AZ, CA, NV
Contact Todd Pigott
Address 2525 Alluvial Suite 281
City, State, Zip Clovis, California, 93611
Phone 559-326-2509 559-326-2509
Fax 888-761-8577
Web Site www.zincfinancial.net
Email info@zincfinancial.net
Share
As always ,Get a note book & ask questions( have them written down already) and write down their answers to your questions. ask if they loan ARV or FMV, If there are pts will they accept them on the back end, what % do they loan on the ARV or FMV, you can probably just ask them for their terms if you are too nervous to conversate and question them. I kind of turn the table on them and make like i am interviewing them. I start off by saying ,Hello my name is John doe from I CAN LLC, and i am shopping around to see which lender is the best fit for my up coming projects, I want to settle on one lender that i can build a great working relationship with and that i can keep coming back to, do you mind if i ask you a few questions on your lending requirements?
hope this helps someone.
Richie.

Login to post comments

Posted on: Tue, 08/25/2009 - 12:50 #14

Member

Posts: 19

Joined: 2009-07-01

Points: 68

Offline

Here are a few I found

BC..you have a good list going...........although there are only TWO on that entire list that are working in Arkansas, and I have contacted both !! Funding for Rehab properties is turning out to be quite a bit more work for me since we are not located on one coast or the other. I may have to change my strategy, instead of doing rehab/flips (being a contractorI thought I had a leg up on the competition) I may have to just do some wholesale deals to build up more cash reserves.

You are right about going on the offensive. I always let the lender know I am shopping for the best deal and want to compare apples to apples. So the more information I can obtain the better.

Good luck.

Marcus

Login to post comments

Posted on: Tue, 08/25/2009 - 13:06 #15

DG Superstar

Posts: 1620

Joined: 2008-07-17

Points: 5437

Offline

Trying to create my own PML

Another strategy i am in the process of using is I typed up some letters with my plan laid out in detail, with my exits strategies included and put them on a business letter head. I offered 10% flat return on loaned money that will be cashed out within a 6 month period. I sent them to local business owners that i know have money. put my biz cards inside and now i am hoping to get a reply.

Login to post comments

Posted on: Tue, 08/25/2009 - 13:19 #16

Member

Posts: 19

Joined: 2009-07-01

Points: 68

Offline

Letters

You may want to be VERY careful about that approach. You could be getting yourself in a very sticky area regarding the SEC and securities. You might want to read up on that before moving forward with that approach.

Marcus

Login to post comments

Posted on: Tue, 08/25/2009 - 13:51 #17

DG Superstar

Posts: 1620

Joined: 2008-07-17

Points: 5437

Offline

Am I doing something wrong

Am I doing something wrong by asking people if they want to invest with me for a prifit??

Login to post comments

Posted on: Tue, 08/25/2009 - 14:18 #18

http://www.deangraziosi.com/node/3711

Member

Posts: 19

Joined: 2009-07-01

Points: 68

Offline

Am I doing something wrong??

BC.......this is the best info I could find to direct you to here on the DG site.

I have read alot more about this on a couple of other sites and in a couple of Real Estate investing books. This is something you will definitely want to be careful of.

Marcus

Login to post comments

Posted on: Tue, 08/25/2009 - 21:36 #19

Member

Posts: 63

Joined: 2008-12-07

Points: 196

Offline

My SEC Letter

BC,

You have a very good strategy there, however Marcus is correct in that there are crucial SEC guidelines you will have to follow. Go to my post above and click on the private lending made easy web site. When you get there click on, at the very top right of the page, the button that says " My SEC Letter." It will answer some of your questions and get you started on understanding SEC compliance. This guy is the expert on the SEC and he has specific study aids tailored for private money solicitation. It might be wise to look into them.

Here is a tip. Just don't use the word guarantee in your solicitations when dealing with private lenders---it is not allowed. This of course is only the tip of the iceberg. Just stay compliant, don't be ignorant of the laws and you'll be fine.

When in doubt go to the experts---seek out a local SEC attorney and inquire about what the local laws are. Just know what is required. It really isn't any more difficult than filing your taxes. Just be aware these laws exist. I would begin with that site.

Best regards,

southstar

__________________

KNOWLEDGE FUELED BY EMOTION EQUALS ACTION, BUT IT IS ACTION THAT ENSURES RESULTS.

Login to post comments

Posted on: Wed, 08/26/2009 - 02:37 #20

YURI77

Senior Member

Posts: 475

Joined: 2009-03-18

Points: 1549

Offline

B.C.

Each person decides how they want to do it and what they are comfortable with.

Nothing is wrong in what you are doing. As long as it pays off!!!

Good luck!

Yuri

__________________

-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --

Login to post comments

Posted on: Wed, 08/26/2009 - 09:16 #21

Member

Posts: 63

Joined: 2008-12-07

Points: 196

Offline

Borrow Money With Confidence

Yuri,

With all due respect if you solicit money and pool money, and use private money to fund your real estate deals you should be concerned about staying in compliance with SEC regulations. This means you have to file the necessary paper work to legally pursue pooling investor funds. Do you ever use private money to invest across statelines? Did you know there is impact of doing business across statelines?

You don't want to be audited by these guys. I encourage you to do your due diligence on the regulations. It's good business practice.

Best regards,

southstar

__________________

KNOWLEDGE FUELED BY EMOTION EQUALS ACTION, BUT IT IS ACTION THAT ENSURES RESULTS.

Login to post comments

Posted on: Wed, 08/26/2009 - 10:10 #22

Member

Posts: 63

Joined: 2008-12-07

Points: 196

Offline

Private Money Real Estate Deals

BC,

Private money real estate deals are a security, and do fall under SEC rules and regulations. Simply put, you in effect are managing someone's money, when they are lending you the money---in the eyes of the SEC, that means you are borrowing it. Let me quote my attorney on this matter:

--" Security laws cover private lending because when someone borrows money from a private lender to invest in real estate, they are offering an interest in their company, or a share of the profits in the form of interest on the money borrowed, and that qualifies as a debt security."

You said you are going to offer a, " 10% flat return on loaned money. " Basically that makes it an " investment contract. " Think about it---you solicit private money, private lenders loan you money, and you as real estate investor manages money, invests money, and returns the money with the promised interest. You are really no different than a bank, so why shouldn't you be regulated. I for one am glad that the regulations exist---it protects us all. Quite frankly your investors will demand that you are in compliance. Why would they hand over say $50K to you unless there was some security in place.

When in doubt, elimate all confusion by knowing exactly what the regulations are so you don't get hurt. You don't want to get audited by these guys, they make the IRS look like pussycats. There is no room for guesswork in good investing---do your due diligence. And borrow money with confidence!!!!!

I hope this helps,

southstar

__________________

KNOWLEDGE FUELED BY EMOTION EQUALS ACTION, BUT IT IS ACTION THAT ENSURES RESULTS.

Login to post comments

Posted on: Wed, 08/26/2009 - 12:04 #23

coachruss

Member

Posts: 15

Joined: 2009-05-28

Points: 52

Offline

Double Close it

I have spoken with 2 hard money lenders and both are willing to finance 100% as long as it is a double closing. One is Coastal Funding in Washington and another is a guy I'm working with here in Ga. Coastal is a better bet as they are national and my guy here in Ga. is much smaller and doesn't usually offer that. I met with him to put a house he has under contract and as our conversation progressed he offered me that deal.

Login to post comments

Posted on: Wed, 08/26/2009 - 12:58 #24