FrontierInvestments

From one of my weekly direct mailings I got back a response from an investor trying to move a home in Buffalo, NY. I’ve kind of taken pity on you guy and I’m just trying to point him in the right direction to get it sold. From what I gather this property is causing him to go broke and has just been a headache. The property is a multi unit, with 6 bedrooms and 3 baths. It was fully rented at $450, $350, and $300 up until two months ago. The top level had a fire, and is obviously where his trouble comes from. The good deal is the guy is asking $1,500, for a property just a few months ago he paid nearly $20,000. If anyone is interested, or is working on behave of another investor you can correspond with me at Frontier_investments@hotmail.com , then I’ll put you in touch with this guy. Again I have absolutely nothing to do with this property, have never seen it and am not interested in buying it. I’m not making a commission, just trying to help him out.

Thanks Michael, I emailed the lender back and hopefuly I can get some more details. I will keep this thread updated.

I just received an enticing offer from a hard money lender with some of the best interest rates, points and ARV I’ve seen. Normally I would have jumped at the offer but they require collateral or liquid assets for a loan to be made. As far as I understand hard money it is made against hard assets, or the equity in a property other wise its really not hard money. It’s understandable that a lender would require more funds incase a borrower defaulted on the loan and they had to sell the home to provide a profit. However every real estate investor I’ve talked to has advised me against using any of my current assets on any loan, no matter what. Has anyone else on this forum successful received Hard Money rehab loans by giving collateral? If anyone has what exactly does the collateral mean? The lender doesn’t actually take the asset(s) and reimburse when the loan is repaid?

I’m looking for a rehab funding loan, specifically a hard money loan that deals with after repair value. I’ve been shopping around and have been contacted by a few mortgage brokers and some individual hard money lenders. What I’m trying to do is gather different programs, and decide which offers the best options for certain property deals that I have. The general consensus with the brokers and lenders I have talked to is- ARV of 65% No more than six points No more than $5,000 in brokerage fees Interest rates between 11.99%-19.00% No prepayment penalties Last credit check was 760, I need a short term loan which obviously offers no prepayment penalties and is investor friendly. The property will be involved in a short sale with professional realtors. If anyone is interested please respond to perfecthealthweb@hotmail.com or directly to this posting. Thanks, Michael