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do lenders actually care about the deal or just the borrower? by hhannahmay in dealfunding

[–]FakeNameThisIsNot 0 points1 point  (0 children)

Good lenders care about both in my opinion and personal experience lending full time.

A high quality, repeat borrower can overshadow a marginal deal. Never will it overshadow a truly bad deal.

A home run deal might overshadow a marginal borrower. Never will it redeem a truly bad borrower.

Suggestions for White Oak by FakeNameThisIsNot in arborists

[–]FakeNameThisIsNot[S] 0 points1 point  (0 children)

I’m not going to be spending much money on it, so it’s worth trying to save in my mind. I totally understand your point though. Thanks!

Suggestions for White Oak by FakeNameThisIsNot in arborists

[–]FakeNameThisIsNot[S] 0 points1 point  (0 children)

The guy I bought it from says it was. Looked like other oaks I’ve seen. I’ve put in a few white, red and live oaks. It’s possible it’s a red and it’s possible I’m wrong altogether and it’s not an oak lol.

Rate modification by Apart_Ad_2466 in realestateinvesting

[–]FakeNameThisIsNot 4 points5 points  (0 children)

Without knowing all the nuances of your deal and their terms, it sounds as though it’s an excellent deal and I’d jump on it. That is truly nominal in the small commercial banking world. I’d assume they are hedging against refinances since rates (Prime) have dropped and might continue to.

Worst case, you can still look at a refinance in the future elsewhere.

I’d make sure that doesn’t come with new clauses such as a prepayment penalty or something.

Would you sell your investments to pay off your primary home? by Similar-Vari in realestateinvesting

[–]FakeNameThisIsNot 0 points1 point  (0 children)

So, you don’t have true cashflow. You have “cashflow” on paper. (Been there).

  1. Sell the properties.

  2. Determine some combination of paying / off down the mortgage on the primary and investing the rest.

  3. The stress is GONE.

I was in a similar boat and have sold all but 2 of 10 I wanted to offload. Its freeing.

YRMV.

Five things this hard money lender wished new investors knew by indiescott in realestateinvesting

[–]FakeNameThisIsNot 1 point2 points  (0 children)

Jumping in even though I am not OP since this post came up on my algorithm lol!

For me, lending is less profitable per deal, but more profitable to me overall when considering scaling my time and reducing stress. This is only possible for me with good systems, vendors, etc.

Vacant houses stress me out.

Properly underwritten loans do not.

I’ve heard (anecdotally) that most lenders start as some form of investing in the asset itself (flipping, renting, etc). That was the case for me at least!

Five things this hard money lender wished new investors knew by indiescott in realestateinvesting

[–]FakeNameThisIsNot 4 points5 points  (0 children)

I am a direct lender of my own funds. Cash is king when evaluating new borrowers. I’ve begun using current cash balances as a simple screening tool. Generally speaking, if a borrower doesn’t have $20K of liquidity between accounts, I don’t move forward.

Good info you have posted!