private mortgage lenders

How NOT to Start Conversation with a Private Lender

December 21, 2023 by Kyle Sennott Leave a Comment

Hard money lenders have significant discretion in choosing whom to lend to. Unlike traditional banks or financial institutions that have strict lending criteria and standardized underwriting processes, hard money lenders are private individuals or smaller-size companies that operate with more flexibility. The decision to lend to a particular borrower depends on the transaction itself. Among key elements of this transaction are its overall profitability, the strength of the collateral, and the risk involved in a particular rehab project. These are the tangible aspects best measured by math and underwriting formulas such as loan-to-cost ratio. The intangible aspect of the transaction is how a private lender feels about a particular borrower.

How to Negotiate with a Private Lender

October 7, 2022 by Kyle Sennott Leave a Comment

**To negotiate with private lenders on pricing, you need to convince them that your transaction is worth their risk**

Flipping homes can be a profitable side gig or a fulfilling career. Whether you are investing in real estate full-time or part-time, growing your profits depends on maximizing the value of each vendor you are working with. On the one hand, it’s paramount to control your costs. On the other hand, you need to ensure that your vendors are motivated to be reliable, fast, agile, and creative. Successful home flipping is a long-term process that involves several vendors. The most important are your real estate agent, contractor, and private lender. Today, let’s explore how to negotiate with your private lender to ensure you get the best deal.

How Private Money Lenders Are Different

December 7, 2017 by Kyle Sennott Leave a Comment

What are private money lenders and how are they different from banks and credit unions? Today, we examine the basics of private money rehab loans and how they can help you compete with cash buyers, lower your cost of funds and leverage your existing capital to take your business to the next level.

Private rehab loans are very different from traditional mortgage programs offered by banks and credit unions. When you purchase a home to live in, you’re applying for mortgage products specifically designed for consumers. As such, they are strictly regulated. Lenders have strict rules and requirements when it comes to origination, underwriting, servicing such loans. In addition, to free up the capital most lenders sell off the originated loans to larger institutions such as Fannie Mae or Freddie Mac. That means that those consumer loans need to comply with the underwriting criteria of those institutions as well. All these factors limit how bank view risk and what kind of loans they can offer to consumers.

How To Manage Rehab Loans in Washington, DC

November 3, 2017 by Kyle Sennott Leave a Comment

From many applications for funding that come to us every day, a big portion is for rehab loans in Washington DC. No wonder, the DC rehab market continues to offer profit margins that are rarely available in the surrounding areas. Rehabbers in the DC area have been consistently making money buying dilapidated properties and turning them into beautiful homes. Their continued success, however, is attracting less experienced (and less well-heeled) investors and driving the competition for distressed properties. As a result, DC continues to offer terrific investment opportunities, but is also a market where it’s easy to make mistakes.

A New Year Brings New Opportunities for Investment

January 24, 2017 by Kyle Sennott Leave a Comment

Hopefully, 2016 was a great year for you as you planned for the future and continued to explore investment opportunities. Whether or not you made the decision to invest last year or not, it is a new year with new opportunities. So let’s we take a moment to talk about your plans for 2017. Even if you don’t have any current plans on investing, it doesn’t hurt to spend some time considering your options. As a local private mortgage lender, we want to help you with your DC real estate investment needs.

Finding Real Estate Deals: HUD Homes

January 9, 2017 by Kyle Sennott Leave a Comment

This article is continuation of our series on finding profitable real estate deals. We’ve already discussed the REO route and its pros and cons. However, there is one type of REO that is quite different from the rest. In my experience as a private mortgage lender, this route offers unique opportunities for real estate investors. I am talking about HUD properties. Such opportunities don’t come often, but some of the most profitable rehabs we’ve seen came via HUD properties.

private mortgage lenders

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