Mortgage Grapevine

We Want Hard Money, Not Fees then Nothing

I have posted this before but I will again.
I have clients in need of Hard Money. Strait Hard Money, 65% of equity. No Games. No Up fronts Fees. No Due Diligence fees before funding. Someone who lets the fees be rolled into the loan, except the appraisal of course.
Is anyone out there funding anything like this? Loan amounts from $40,000 to 10 million. Although I can work with what you have.
If you can fund like this, I can send you business. Please no jokes. I want lenders that can walk with walk. Leave your name, number and/or email and I will be in touch.
by ohioinvestor July 7, 2010 2:20 PM

You say no jokes but "walk with walk?" I believe what you are looking for is called being a banker and you obviously are not. I do like walk though.
by frankenstyle July 7, 2010 3:07 PM

back in the day I used to send people to ohiorehabloans...
by LOANMAN July 7, 2010 4:02 PM

is RECASA still out there, they are/were based in ohio

by LOANMAN July 7, 2010 4:02 PM

You'll probably post it many more times, because your not going to find it. There aren't any lenders, anywhere, at least that I know of that lend 100% of the deal, and have no diligence fees. As a matter of fact, I wouldn't be surprised if DD fees started rising. Especially in this market and economy, people are tired of working 3 months on a deal, just to find it doesnt close because the borrower say didn't disclose they converted the property and zoning on its screwed, or whatever. If a borrower needs funding, they should understand that all the parties involved...broker, processor, underwriter, lender, etc. spend hours upon hours working their files. The norm should be a fee to these parties at issuance of LOI for the time they are going to spend on the deal. Nothing steep, but something that makes sense. One wouldn't pay an attorney at the end of the process, and after their work was done, right? They'd tell you they couldn't help you.
by kjhoffman July 7, 2010 4:13 PM

I agree with Kjhoffman. You will not find a credible lender who will be willing to pay legal, title, site visit costs, underwriting, etc. out of pocket, and why should they?

What you need to do is find a lender who is verifiable, is actually closing deals, and does enough pre-underwriting upfront so when they make an offer it is based off a real understanding of the project and not just an executive summary.

That "should" give a borrower enough comfort to know they are dealing with a real entity and not a LOI factory who is looking for upfront fees. It takes money to close a deal, and a real lender will only charge what it takes to close a deal. Even HUD and SBA lenders charge to work on a file nowadays.

You need to manage your client's expectations as to what it takes to obtain funds in 2010. Competition for money is fierce, borrower's are broke, deals are teetering on collapse, values are falling, blah blah blah. You need to explain the "hoops" a borrower must go through and that it isn't the lender's fault if they got taken by a broker or some Kennedy Funding clone. Who's fault is that? Certainly not the lender who is real. You don't get free brakes from a shop just because the mechanic before screwed up do you? You still pay a new doctor if the doctor before didn't diagnose your condition don't you?

by TheMaineEvent July 7, 2010 5:50 PM

Full Service Mortgage Banker: Lending Only In California

For over 15 Years New Haven Financial has offered our “valued broker sources” with straight answers, FAST underwriting decisions, reliable funding, and superior service. As “Hard Money” experts we fund loans with private investors and can fund your loan FAST, usually within a few working days. Every deal is underwritten on a case by case basis. If your having trouble placing a loan or closing a transaction, let us go to work for you.

Contact: R.J. Solovy
License ID: 01876915

by RJS Hard Money July 7, 2010 5:54 PM

If the deal is in California let me know...I will only go up to 60%.

Thank ou,

Pouyan Broukhim---PB Financial Group Corp
323-935-5555 x 102 Office
866-318-4471 Direct Fax
Click Here
by PBFinancial July 7, 2010 9:18 PM

Depends on the state and the circumstances. I have lenders in Colorado and the Pacific NW that will do these with no fees upfront except the appraisal but they have their sweet spots. And they tend to make up on the back end in fees what they don't charge on the front end. Very, very expensive.
by lighthouse1 July 7, 2010 10:31 PM

The problem is your deal is in Ohio
by getmedone July 8, 2010 10:58 AM

I never said the deal was in Ohio. where did I say that Getmedone?
by ohioinvestor July 8, 2010 11:14 AM

Ohio investor,

You are welcome to give my office a call.

We are a recognized leader in the United States as a diverse capital market advisory and investment firm. Our professionals and partners offer an array of services including but not limited to Real Estate Finance, Corporate Finance, Structured Finance, Capital Market Research, Valuation Services, and Strategic Business Development services. Our expertise in the capital markets allows for the investment of the proper blend of debt, equity, synthetic, derivative and hybrid capital in order to resolve particular transactional needs that cannot readily be met by financing in today's capital markets. We are a direct lender.

Our company is focused on working in conjunction with numerous domestic and international capital sources which service a diverse scope of transactions. We are direct to hedge funds, REITS, equity portfolios, private merchant banks, pension funds, and high net worth family offices in U.S., Europe, Asia, and the Middle East.

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VP Business Development
Office 425.427.2969 | facsimile 425.427.2876

by eqtylndr July 8, 2010 11:38 AM

If your deals are local, check out your local REIA's (Real Estate Investment Associations). None of the lenders in my local ones charge any up front fees. 65LTV without cross collateral may be tough, but you won't know until you attend the meetings and meet your local lenders. There hasn't been a single meeting that at least one hard money lender didn't stand up and say they had money available. I'm in RI.
by Alan B July 8, 2010 3:28 PM

If your looking for a real hard money lender all your going to find is thin air.99% of these people are just mortgage brokers using the term hard money because its popular for people who dont qualify for traditional financing.If your looking for money you need to find a doctor or private lender who looks at the deal and the profits not the borrower, unlike these so called hard money lenders who look at credit and everything else.Another good avenue is angel investors.With these people all you need is a good executive summary and exit strategies.They will fund all your deals and will even put up earnest money for you,pay for appraisals or any costs as long there rolled into a 65% LTV.
by ranger16 July 13, 2010 2:49 PM


do those angel investors give you a free BJ when they pay for all the due diligence costs and put up your earnest money. Come on. It's the nature of hard money. pay to play.
by trustdeedinvestor July 15, 2010 5:26 AM

I hope those Angels paying for everything are Victoria Secret Angels
by trustdeedinvestor July 15, 2010 5:27 AM


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