Posted by scott on July 23, 2001 at 09:53:54:
I’m trying to get conneccted with a local group here in Orlando. Does anyone know of a group here or how to contact people here that are into rehabing, etc…
Decided to start looking for financing! - Posted by Jose O. (FL)
Posted by Jose O. (FL) on June 27, 2001 at 11:50:17:
Well, I have been reading messages on this board for a while, but after reading the Lost Time post by Rich, I decided to start looking for Hard Money Lenders to start the business.
I am in Orlando, Florida, and I called lenders I found in the yellow pages and the newspaper. I called 8 lenders. Of the 8, only two persons answered the phone. The rest were voice mail, and I left a message to each one to call me back.
I asked one of the two people if they offer Private Mortgage Loans or loans for Rehab Properties, and he told me that he would lend me 60% of the purchase price. When I asked him if they lend money based on the fair market value of the house AFTER the repairs were made, he said “Oh, I know, you just took a real estate course and think that people are going to loan you money based on the FMV of the house. Well, nobody in his right mind will do that.”
The other person I spoke with was very understanding and said she would call me back with some alternatives.
If you guys (or ladies) know of hard money lenders or rehab financing in Orlando, FL, let me know.
Also, I would be interested in meeting with people that buy and sell rehab houses in Orlando.
This is a great site, and I appreciate your input and comments.
Re: Decided to start looking for financing! - Posted by SueC
Posted by SueC on June 27, 2001 at 14:24:25:
Try Ed Garcia, he lends in FL, you can post on the Financial board here and he’ll get back to you.
A “true” hard money lender will lend based only on the value of the property, generally up to 70% of the ARV but this # will differ by lender. Many lenders call themselves “hard money lenders” but then ask for your credit info, W-2s, etc. etc. They are NOT hard money lenders. HM is expensive tho’ as Valerie says.
Good luck, Ed will steer you right. You can find his email on other posts on this discussion group too, I don’t have it off hand.
Re: Decided to start looking for financing! - Posted by Valerie
Posted by Valerie on June 27, 2001 at 12:11:15:
Jose -
I am a newbie too so take what I am saying in stride. I was really gung-ho about finding lenders too and I did just what you spent your time doing and now I have seen the light. HM lenders are expensive. I got quotes of 5-10 points and 17% interest. I thought OK, no problem, I just pay off the loan when I have a buyer for the property but then after reading a post on this board regarding this very same subject, I realized that you have to make sure to work your numbers and be sure you can still make a profit after paying all the points and fees, etc. 1 point is 1% of the purchase price so $100,000 house with 10 points is $10k right off the top of your profits.
What I did was first… contact you local investors group or make a friend from someone in your area from this board (There’s at least 1 person, I’m sure) even if they are a newbie too. SueC (from this board) and I live close and e-mail each other and she has given me a lot of good ideas.
Go to the investors meeting in you area and talk to EVERYBODY! Have a game plan ready though. Don’t just walk up to someone and say “I buy houses” because so do they. You are the competition. Try to barter to get the info or possible funding. I have not been to my local meeting yet because the meeting location was flooded out. But I have done it with other people I’ve made contact with.
Also, think about flipping, buying subj to or buying on L/O.
I was really gung-ho too to find a lender but make some offers first, then find the financing (but try the other CREATIVE ways to buy FIRST). I think it’s easier to find funding when you have a great deal on the table rather than a theoretical one. I am sure you can come up with ways to buy RE without using HM.
Remember, I’m a newbie too looking for that “first deal” but I am trying to make responsible, educated choices when it comes to REI. Don’t think HM lenders are the only way to go.
Good Luck to you.
PS - Any pros out there… if you disagree PLEASE speak up! Thanks!