| When borrowing for your business, there is a difference!
When shopping ask yourself the following questions: -
Should I pledge my credit rating and have the score affected negatively by short term borrowing such as this? -
Will this type of borrowing have an effect to my long term borrowing capacity or interest rate? -
How much will this loan really cost, All things considered? -
How much money do I have to bring to closing? -
Does this lender require a credit report on me? If so, what will affect my ability to borrow later? -
If equity in the property is the only consideration, why do they need a credit report on me anyway? -
Will they require an appraisal on the subject property? If so, how much will that cost? How long will that take? Does this effect the terms of the loan? What is the real loan amount vs. value? If an appraiser is needed, Can I use my own appraiser? -
Have they worked out a special deal with the closing attorney to reduce closing costs and title search fees? -
Do they charge one time or monthly loan servicing fees? -
Do they charge inspection fees on rehab projects? -
Are they flexible on the number of draws if the loan includes rehab money? -
Will they provide any project assistance or answer any technical questions about the project including contract assistance, working with the contractor, material selection, design or marketing suggestions? -
Will they allow the points to be added to the loan or do they want them up front, meaning more money needed at closing? -
Will they allow the closing costs to be added to the loan or must they be paid at closing? Depending on the after repaired value, location, total loan amount and experience level of the borrower, many times we can provide some or all of the above. Consider what is in your best interests before making a final decision about the cost of your purchase and rehab loan. Note: Our loans are only available for properties located in Georgia. You might be saying, "But Lou, my deal is not in Georgia!" Here is what Lou recommends: Call local mortgage brokers (you can get a list from the yellow pages) and ask them for referrals of local private money lenders. Also develop your own access to the money by developing your own lenders. How to do this is covered in detail in the Investor Bootcamp. |
