Where to post? (fund, credit, cash, annual fee)

[michaela61]

I'm looking for suggestions on where to possibly post this to find people that are interested in investing in real estate notes with 12% return?

No, no, not a scam (I know, it may sound like it). I have actually bought a number of houses with cash this year, renovated them and rented them out. I have a great property manager, who's taking care of everything.

So, my idea is, since I own these houses free and clear, to create some 1st small mortgages on each, pay interest only at 12% for 2 years. Use the funds to buy and renovate more houses, etc.

Right now I wouldn't be able to go to a bank and get a mortgage with cash out. But let's say I paid 12% for 2 years and then approached a bank for a refi, without cash out, they would then see it as a smart business decision on my and their part to give me a mortgage at 7%, just refinancing, no cash out.

Example: I have a duplex and my monthly rents are $ 900.00. I'm looking to create a mortgage for 35K at 12%. My monthly interest only payment would be $ 350.00 to the investor.

I have the opportunity to buy a few more houses in the same neighborhood that my others are in and I'd love to take advantage of it. This would give me the funds to do that.

Any suggestions on where to go to find people with money to invest?

[pghquest]

Try a bank

[michaela61]

Haha - as explained above, banks won't even consider financing investment properties where there's 'cash out' right now. I own all the houses free and clear, so there's no chance to do business with a bank at this time. But in a couple of years, once I've shown regular payments - and at a higher rate - and where there's no cash out - there wouldn't be much of a problem to refinance.

[Brian.Pearson]

Originally Posted by michaela61

I'm looking for suggestions on where to possibly post this to find people that are interested in investing in real estate notes with 12% return?

No, no, not a scam (I know, it may sound like it). I have actually bought a number of houses with cash this year, renovated them and rented them out. I have a great property manager, who's taking care of everything.

So, my idea is, since I own these houses free and clear, to create some 1st small mortgages on each, pay interest only at 12% for 2 years. Use the funds to buy and renovate more houses, etc.

Right now I wouldn't be able to go to a bank and get a mortgage with cash out. But let's say I paid 12% for 2 years and then approached a bank for a refi, without cash out, they would then see it as a smart business decision on my and their part to give me a mortgage at 7%, just refinancing, no cash out.

Example: I have a duplex and my monthly rents are $ 900.00. I'm looking to create a mortgage for 35K at 12%. My monthly interest only payment would be $ 350.00 to the investor.

I have the opportunity to buy a few more houses in the same neighborhood that my others are in and I'd love to take advantage of it. This would give me the funds to do that.

Any suggestions on where to go to find people with money to invest?

You might consider a line of credit. Normally, there is an annual fee of $25/year, whether you use it or not. And if you take some money out, then there's some interest attached to it.

Talk to your bank and request a comparison between your idea and the line of credit.

[michaela61]

Brian, thanks, but as explained, banks will not even look at any investment properties, even with equity lines. In fact, everybody that I know has gotten their credit lines cut, even if they've had perfect credit.

Private money is pretty much the only way to go at this time, and I know that many people see 12% as nice income and I have no problem paying that much. My only problem is trying to find people that have money that they want to invest.

[pghquest]

Originally Posted by michaela61

Haha - as explained above, banks won't even consider financing investment properties where there's 'cash out' right now. I own all the houses free and clear, so there's no chance to do business with a bank at this time. But in a couple of years, once I've shown regular payments - and at a higher rate - and where there's no cash out - there wouldn't be much of a problem to refinance.

Not true at all, I'm doing a refi currently on one property and increasing the size of a HELOC on a 2nd home to cash out and buy another investment property. The LTV limits are much lower than the past, but they are indeed loaning money, especially to properties paid off with no mortgage.

Your "regular payments" to an investor will most likely not be looked at by the bank as a payment history. There was a time in the past that they would use cancelled checks, but as you proclaimed, things have changed.

If your dead set upon a private loan, you are looking for a hard money lender.. They are expensive, but they can close quickly.

[michaela61]

pghquest, my situation is more complicated - I'm self-employed and all my properties are in Georgia. I now live in California. My bank is in California only and won't deal in Georgia. I do not have a relationship with a Georgia bank at this time. Banks are not an option right now. My question is, where can I go to find private people that would like to get 12% interest?

[pghquest]

Originally Posted by michaela61

pghquest, my situation is more complicated - I'm self-employed and all my properties are in Georgia. I now live in California. My bank is in California only and won't deal in Georgia. I do not have a relationship with a Georgia bank at this time. Banks are not an option right now. My question is, where can I go to find private people that would like to get 12% interest?

"hard money lender" These are the types of loans they specialize in..

You could also try p2p lenders, (prosper.com for example) but the hard money lender is the faster/easier route, but costly.

[michaela61]

not interested in HML, as they're looking for points up front and only do 12 months maximum. I know there are private people that have funds. I guess this is just not the kind of forum to ask this.

[pghquest]

Originally Posted by michaela61

not interested in HML, as they're looking for points up front and only do 12 months maximum. I know there are private people that have funds. I guess this is just not the kind of forum to ask this.

If you are seeking others here to loan you money, thats not going to fly here and a violation of TOS.

I've worked with hard money lenders in the past, one went out 5 years, and yes, he had points but so do banks.

You've asked for advice, and if the only thing you can offer is excuses why they wont work then you might have to find other avenues.