This is really great information. I own a private money lending company in the Central Valley of California. We lend on flips all the time. I do a profit spreadsheet with my investors to make sure my investor will win and the flipper will win, with our conservative projections. Thanks for sharing such great info.
Thanks! Have you read Matt's book yet? If so, please leave it a review on Amazon! Here's the link: www.amazon.com/review/create-review/?ie=UTF8&channel=glance-detail&asin=B07G4J5TMY
Great to hear! Welcome! So glad you like the content!! And if you have any questions please email them to "helpme@derosagroup.com" and we will answer them on a Mentorship Monday episode! Thanks for watching!!
I have a PML sending me over a term sheet. On it it specifies the Origination Lender fee and the broker fee. Is that additional to my 25% downpayment? And is that all due at closing?
If you can, I would use a bank. The interest rate will be less. Pml is for when you don't qualify or the deal won't work for a lender, like a deal that needs a bunch of renovation and isn't producing income
can someone explain to me on how you pay the private lender back monthly when the money is tied up in the deal. like if youre using in the process of rehab the home but a monthly payment is due with interest. do you just have to have money aside for payments or do they work with you and only get paid back when the deal is done and you cash out on the property? thanks in advance
You can either pay them back out of cash reserves you have or out of cash flow from antother investement, or you can negotiate no payments until the property is either refinanced or sold.
Sounds like a great deal for you, not so good for them but maybe they reduced their construction cost by more than that so maybe a win win? Hard to say without seeing their expenses.
Have you used private money to fund your deals. What are some of your do’s and don’t of private money?
What documents should I give my private money lenders in order for them to feel secured about the loan. Thank you
This is really great information. I own a private money lending company in the Central Valley of California. We lend on flips all the time. I do a profit spreadsheet with my investors to make sure my investor will win and the flipper will win, with our conservative projections. Thanks for sharing such great info.
Glad you liked it, thanks for the comment. Hope you get some leads from it!
Sonya do you only lend money just in California I live in Ohio.
Hi sonya would you able to help me out i live in central valley
Do you only do California
I’m thinking of using a private lender , appreciate the video on some things to look out for
Thanks! Have you read Matt's book yet? If so, please leave it a review on Amazon! Here's the link:
www.amazon.com/review/create-review/?ie=UTF8&channel=glance-detail&asin=B07G4J5TMY
I can recommend
New to the channel - impressed with the content so far
Great to hear! Welcome! So glad you like the content!! And if you have any questions please email them to "helpme@derosagroup.com" and we will answer them on a Mentorship Monday episode! Thanks for watching!!
Hello, would it be appropriate for a private money lender to request a one time loan origination fee?
Sure, it's called "points" and they are very common
@@DeRosaGroup Thank you for responding
@@DeRosaGroup isn't points for hard money lenders?
No, most lenders charge them they just call them origination fees
I have a PML sending me over a term sheet. On it it specifies the Origination Lender fee and the broker fee. Is that additional to my 25% downpayment? And is that all due at closing?
So if I want to buy a property and I have the 20% for a down payment... should I use a PML?
If you can, I would use a bank. The interest rate will be less. Pml is for when you don't qualify or the deal won't work for a lender, like a deal that needs a bunch of renovation and isn't producing income
@@DeRosaGroup However, what if you wish to refinance? Banks would lock you into an interest rate and you will be unable to refinance in the future.
Have anyone heard of Express Capital private lending?
We haven't
can someone explain to me on how you pay the private lender back monthly when the money is tied up in the deal. like if youre using in the process of rehab the home but a monthly payment is due with interest. do you just have to have money aside for payments or do they work with you and only get paid back when the deal is done and you cash out on the property? thanks in advance
You can either pay them back out of cash reserves you have or out of cash flow from antother investement, or you can negotiate no payments until the property is either refinanced or sold.
Vet your investor
They will still your deal
Not if you are fully under contract when you present the deal. I recommend not discussing deals in detail with anyone until you are under agreement!
@@DeRosaGroup How can you get them to agree to borrow the money without discussing the details?
I lent money to house flippers and because they were doing the work themselves it took 3 years and cost them $22,000 more to me.
Sounds like a great deal for you, not so good for them but maybe they reduced their construction cost by more than that so maybe a win win? Hard to say without seeing their expenses.
ABC, Always Be Conservative, Great Content.
Thank you!
Thanks Anthony for commenting and watching our channel!! :)
There is a time and place for risk.
This video is definitely not for rookies..lol
Our videos are for EVERYONE, lol!!
Please talk a little slower in your next video if you could.
Thank you for the feedback! Please check out our newer videos and I believe you will be happy with the quality improvement. =)