The difference between the two lenders is that one is local and Brookview is national. The local lender knows the market and can actually see the property they are lending on. Brookview has to compile more info to be comfortable with the deal. Plus the are probalby slammed with the real estate market being what it is.
We have lent money locally fairly easily for 5+ years and will not go outside the area. When I was a loan officer and was doing hard money deals with national investors it was no less than a beating sometimes. Sometimes my local investors cash was capped and I didn’t have any other choice but to go with a national company.
I thought I’d post my recent experience with Brookview Financial since they have sponsored a banner on this site and b/c there’s been discussion on this forum. As many know their terms are 5 points AND 15%. This is very hard money so the bureaucracy should be minimal, right?
I applied before Thanksgiving expecting to have at least a yes or no by Christmas. I photocopied at least 75 pages of required info for my application. Heard nothing for a while. They requested more info twice with weeks going by without hearing anything.
I have high credit. Income has been hurting for a while but not below a very respectable level with AGI of $80k with the hubby. Moderate debt.
Working locally I’m referred to a local hard money lender in December. They take my SS# on the phone, run credit, next day they say I’m fine, go shopping. I find a deal, I go into contract to close at the end of January. I fax contract to both Brookview and to local hard money lender. Brookview wakes up and calls me a few times for additional information. (side note: I asked them in advance who their local appraiser is and I engaged this appraiser for summary appraisals on a few properties at $125 an appraisal b/c I wanted to make sure I was staying within parameters.) Local hard money lender talks to my appraiser and agrees with his assessment over a two day period. As it turns out, they know my contractor b/c he’s the son of their primary maintenance guy. They review his summary of repairs with approval. Deal done: 40k acqusition, $75k rehab work, $170 after-repaired value; $119k in money borrowed, zero out of pocket to close; 12% interest; one point charged upon refinance. Invited to have drinks with my new best friend Tara who I’ve been talking with daily for a few weeks.
Brookview just so happen to call this early evening. Loan denied. They need to “see a few more things from me” before they will be able to work with me."