Thread: Private Mortgage Lending

If it is all on one deed it may make it hard for comps. Most hard money lenders right now are wanting you to put skin in the game no matter how good you bought it or what the value is.

Originally Posted by Jholden

Upstate New York, its near my family so i have been going back and forth with everything.

how far upstate? i might have some contacts for you

Originally Posted by Jholden

I was wondering if any of you know of any private mortgage lenders or have friends or maybe even you who do private loans. I have a chance to buy a great 400,000 piece of land for 1/3 the price.

Even if you are buying the property for a deal, you are still going to have to put your own money into the game. As a lender, if I gave you all the money you needed, you could walk at anytime with no loss of capital which would make it a bad investment for any investor.

Originally Posted by Spencer

Hard money is generally going to be 60-65% LTV (or purchase price), 3-6 points, 10-16%, and a 6-36 month balloon on a I/O or 30yr schedule.

This is pretty spot on. We're at 11% on 1st TDs and up to 17% on 2nd TDs and these are all coastal properties in Orange County or LA County, CA with ridiculous equity and properties that any investor would want to foreclose on.

Originally Posted by Jholden

I was thinking 8% and yes 12 months with a balloon.

Rate is pretty low unless you have the seller carry. On seller carry backs, you can negotiate the rate down but at the same time, he will negotiate sales price....kind of like buying a car and needing finance.

For a lender to come in with no ties, there would have to be a better upside such as an equity kicker.

I don't know the NY area so I won't say too much but I have properties with great equity that are easy to liquidate with great upside which although this one might have value to you, I don't see that for an investor who wants an investment return and not a property to sell.

NY is about the worst state to foreclose in next to NJ, so I wouldn't doubt a low volume of collateral based lending. I won't touch NY mortgage deals with a 10ft pole.

Originally Posted by stevefromtheham

If it is all on one deed it may make it hard for comps. Most hard money lenders right now are wanting you to put skin in the game no matter how good you bought it or what the value is.

Yea i am putting probably $50,000 into it.

Originally Posted by nyspeedfreak

how far upstate? i might have some contacts for you

Near the Rochester region, which in the area its in has a very low foreclosure rate this was the only property in the year for this area and only foreclosed because it was attached to a restaurant that failed

Originally Posted by ChumpChange

Even if you are buying the property for a deal, you are still going to have to put your own money into the game. As a lender, if I gave you all the money you needed, you could walk at anytime with no loss of capital which would make it a bad investment for any investor.

As above ill probably be putting close if not more than $50,000 in.

Originally Posted by ChumpChange

I don't know the NY area so I won't say too much but I have properties with great equity that are easy to liquidate with great upside which although this one might have value to you, I don't see that for an investor who wants an investment return and not a property to sell.

The upside would be since there is a second home, 3 apartments, a shop and a few other things the ability to rent out in that area would be close to $3000-$4000, so it could become a rental property, or with the zoning be sectioned off.

curious to know if you were ever able to find a lender? Did you make the purchase?

I havent yet found one still very interested, i went to my usual guy and he doubled his money in stock so doesnt want anything todo with housing.