NEWBIE WITH AN HML QUESTION?

[Big Todd]

This is my first post,although I've been reading post on this site for months now.You guys are brilliant!!!!    I have been filling out some HML applications online,as quite a few of you have suggested,to get some start up capital.   I got a phone call from Pan American Advisors earlier today,and this guy was telling me ,"he has nine investors interested in lending me the 150,000 dollars I am asking for.But I have to wire them 475 dollars,(5% of the 150,000 dollars),and a signed copy of an agreement letter that they have faxed me."         The 475 dollars is sort of like good faith money,and will be refunded upon my being funded the 150,000 dollars.   Also in this agreement,they promise to draw up my proposals,present my professional proposal to the investors,and present me with some sort of success plan.          Is this normally how HML's are done.  And has anyone here ever done business with Pan American Advisors???   Thanks,in advance,for all responses!!!

[kdasilva]

If I were yoou why don't you just find a lender willing to lend you the money.  There are many lenders out there that will lend 100% on investment property.  These type that ask for payment with no gaurantees are shady.  If I were you I would ask for some kind of gaurantee in writing.

[Big Todd]

I was thinkin' the same thing. This sounds like a scam!!Well, back to the drawing board.

[Big Todd]

Thanks kdasilva for the help in advance. I have invested in real estate before,but this time I plan on doing it the right way. Armed with as much knowledge as possible!!!

[Big Todd]

I was young at that time,around 24 or 25,and I thought the goose would never stop laying golden eggs.But now I know that I have to keep feeding the goose :D :D :D

[kdasilva]

Try to find sellers that will take a second mortgage.  But your best bet is to find sellers that will take a second because a seller will give you a way lower rate than any bank will.  

[CML Lending]

Some times hard money lenders ask for the $475 up front because they are pessimistic that the deal will actually close and fund with them.   Most hard money lenders do not require this.  

My final piece of advise is to keep searching for a lender that is going to partner up with you going foward.  Until you feel like it is a partnership, you are probably using the wrong hard money lender.

Steve P.

[blueprints1971]

No  lender, hard money or conventional, should ask for money .unless its for the appraisal, or if the property is commercial...there is often an upfront application fee.   Persoanlly I wouldnt even do business with anyone who asks for money in good faith.  If anything, since he has 9 lenders for you he should give you some money in good faith.

[Big Todd]

LMAO,I agree with you all the way BLUEPRINT1971!!!!

[Big Todd]

Thanks for the advise SteveP.I'll look into those sites right now!!!

[blueprints1971]

This is my first post,although I've been reading post on this site for months now.You guys are brilliant!!!!    I have been filling out some HML applications online,as quite a few of you have suggested,to get some start up capital.   I got a phone call from Pan American Advisors earlier today,and this guy was telling me ,"he has nine investors interested in lending me the 150,000 dollars I am asking for.But I have to wire them 475 dollars,(5% of the 150,000 dollars),and a signed copy of an agreement letter that they have faxed me."         The 475 dollars is sort of like good faith money,and will be refunded upon my being funded the 150,000 dollars.   Also in this agreement,they promise to draw up my proposals,present my professional proposal to the investors,and present me with some sort of success plan.          Is this normally how HML's are done.  And has anyone here ever done business with Pan American Advisors???   Thanks,in advance,for all responses!!!

Why are you considering hml s anyway? have you tried going through more conventional lenders?  There rae so many different loan programs out there that it s worth  getting a second opiion  if a bank tells you that they cantr help you.

[Big Todd]

I'm going with HML's because my credit is not what it used to be.Its not terribly bad,but it also isn't good. And HML's seem to be a faster way to go. I can get the investment money I need much faster.I don't mind paying the higher interest as long as I'm able to jump on deals faster than the next guy.As long as I'm getting what I want and my lender is getting what they want,I figure the end justifies the means .Once my credit is back in A1 condition,I might look into bank loans for the better interest rates.But if I have a great relationship with my HML lender,thats who I'll stick with. If someone helps me out when I'm in need,I become a loyal friend to the end!!!!

[rlcard]

I went to thier web site and found that Pan American is an aadvisory group that will raise capital for your busines. Uner thier FAQ they state:

Is there a cost to get started?

To get started with Pan American Advisors services all it takes is a nominal good faith deposit that assures both Pan American Advisors and the investors that you want to immediately move forward with your business project.
Your deposit will be refunded in your first round of funding and our fees will be deducted from this funding.  Fees vary, based on the services you request.  Speak to an account executive for more information.  

The amount they gave you is just the begining! There are more fees to be paid and the paperwork will be much more intensive then any loan application. If you do not have a solid business plan this is definetly not the route to take.

[Big Todd]

Thanks rlcard for your response. By reading everything about real estate,and asking questions in different forums,I have constructed a solid business plan.I'm not going to go with Pan American Advisors.Thanks to a couple of responses to my post,I am currently entertaining a few more prospects.If it weren't for a few good people responding to my post ,in this forum,I might have put the cart before the horse!!!!But with my motivation,and their help,I'm learning to shop for financing juust like shopping for investment property.  

[DHLC]

Steve P is 100% correct.  If you find a good deal you will have no problem finding a HML to finance it.  Typical terms are 12 mo.  No  or 90 day pre-payment and 4-5 Orig Points and 14%-18% interest Only.

BTW.  If your HML does not want to do the deal...don't do it.  HMLS to not make loans on properties that do not make sense...neither should you.

good Luck!

Rob