Funding A Hard Money Business
Does anyone have any experience with funding a Hard Money Loan Company? I am backed with a couple of million now, but that is not going to last very long. If anyone has any ideas, I would really appreciate it. I have talked to the banks that my businesses have been with, they both want a huge reserve and rates that are so high, they are bleeding off too much of the spread to make it profitable.
Thanks,
Arch
We use a local bank that is focused on small businesses. The bank will generally advance 60-75% of the funds we are lending. While we can not leverage ourselves as much as we want in some cases, rates are a few points above prime with a low reserve.
One of my private investors uses a national bank which will advance 90% of the loan balance but his net worth must be over $10 million. Good Luck
yes, search your ads for fsbo with owner financing . they will negotiate with you without the hassle of conventional loans.
[addsig]
JainLv, good advice I was going to tell him the same thing that with them score in can go stated income and stated assest, to get rid of the DTI issue
I dont see how the shelf corp will help you any better if you started a new one, it hase no tax reurns for 3-4 yrs, so all it gives you is a registered entity with time behind it. They should ran money through that corp and file for them years with a 0 profit. I do shelf corps and run moeny through them, so I can have tax returns. But you should just do a new, because Im sure they are charging for that time that really cant help you do nothing.
Thanks for the response.
What would be the advantage of owning a corp that $$ was run through it?
Why would one want a seasoned corp?
If not for financing reasons??