Thread: Private Mortgage Lending

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. I am trying to go outside the bank for this one and am looking into maybe a 30yr loan but with balloon because I will have it paid back within a year. Interest only would be my first option but I am open for other ideas. Please any ideas would help I want to offer this house within a week so I need to act fast as I don'[t know how long I can hold off on it. So please message me or email me I can give my number we can talk it over ill give all the info and we can talk everything through and see what we can get moving.

Thanks,
Josh

Land is generally considered the most illiquid and least desirable form of real estate collateral, and hence, is hard to get financing for, especially in this environment.

Any lender (private/hard money or not) will require an appraisal, and most likely only lend 30-40% on value (or purchase price depending on the lender) due to that fact that its land, so expect to come to the table with a significant amount down.

Also, how do you expect to get out of a land deal in less than a year?

Originally Posted by Spencer

Land is generally considered the most illiquid and least desirable form of real estate collateral, and hence, is hard to get financing for, especially in this environment.

Any lender (private/hard money or not) will require an appraisal, and most likely only lend 30-40% on value (or purchase price depending on the lender) due to that fact that its land, so expect to come to the table with a significant amount down.

Also, how do you expect to get out of a land deal in less than a year?

Its not just land, haha its about 8 acres with 8 buildings on it.

I expect to pay for the rest because in a year i will have the full amount its just as of now i dont want to use my business capital to pay for the house when i can put off for a year.

...

Originally Posted by Christopher

how exactly do you think you can pay it off in a year, and why would you stay away from banks?

The reason i am staying away from banks is personal discomfort i just simply don't like them. I have amazing credit and the ability to get my loan there but i don't want to. Also since its not a primary location i will have to go before the board and they could take 45 to 60days and when i am trying to close in that time i don't want to wait.

Originally Posted by Jholden

Its not just land, haha its about 8 acres with 8 buildings on it.

I expect to pay for the rest because in a year i will have the full amount its just as of now i dont want to use my business capital to pay for the house when i can put off for a year.

Well, that changes things quite a bit.

Is it residential or commercial? And where it is located?

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.

Originally Posted by Spencer

Well, that changes things quite a bit.

Is it residential or commercial? And where it is located?

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.

Yea haha when i read your response i was wondering but then realized i didnt portray this right. Its a residential, with a 4600sq ft house, a 3400sq ft garage, another 2300 sq ft home, a 3200 sq ft 4 apartment complex, a 2 car detached, 1 car detached, a 2300sq ft shop and a 2650sq ft barn. All with the correct zoning and paper work.

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

Originally Posted by Jholden

Yea haha when i read your response i was wondering but then realized i didnt portray this right. Its a residential, with a 4600sq ft house, a 3400sq ft garage, another 2300 sq ft home, a 3200 sq ft 4 apartment complex, a 2 car detached, 1 car detached, a 2300sq ft shop and a 2650sq ft barn. All with the correct zoning and paper work.

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

Where is the property located? Hard money lending is generally a local business.

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

Originally Posted by Jholden

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

I'll send you a PM with some info on a few contacts.