Alternatively, I believe Merchants Mortgage provides 2-5 year "soft money" loans at rates lower than hard money. "Soft money" meaning they require that the borrower has sufficient equity in other properties/assets to cross collateralize the loan or have sufficient income (including rental income). I think Kim Hubbard 303 770-6801 would be the person to contact.
If the property does not require any significant repair, many lenders including hard money lenders may want you to put money down or have very strong justification of why the loan amount is only 70% of the real liquidation market value (many hard money lenders believe the purchase price is very close to the liquidation market value unless improvements would "unlock" value).
Please let me know the solution you choose. I like to let my borrowers and potential borrowers know of options.
I hope you will consider us if you ever need a shorter term (1 year or less) hard money investment loan.
The reason I am looking for hard money for an "extended" hold is because of the current lending environment. I have seven rental properties, and all properties have to have 6 months reserves in order to qualify traditionally. That is a steep sum of money, and I feel it would be better used deployed and invested, even if interest rates are higher over three years.
If you are willing, please explain why you are looking for private money and the types of properties & price points. I doubt my company would be willing to make such long term loans, but maybe I or others can point you in the right direction.
The aforementioned is personal opinion and I believe it to be correct at the time of posting. None of the content should be considered a binding offer or agreement. I make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information. I recommend consulting a qualified professional before acting. Rates and terms are subject to change.
I would try 1st Bank if you are looking for a 70% LTV buy and hold investment property loan. If you are putting at least 20% down they will portfolio the loan so the underwriting is more of a common sense approach than Fannie/Freddie channels. I use Blake Zimmerman over there for most of my NOO loan and he can be reached at email@example.com or 303-329-4780. Good luck.
Modern Real Estate