Best Lender For Home Impovement Loans To Offer Customers?

the_turd_man

Has anyone found a outstanding lender to finance home improvement projects? Besides key bank? I am not too fond of waiting for pmt until after my job is done! Some projects run upwards of $35,000

I need to find a lending company that is straightforward that leaves me where I do not worry about payment.

anyone who can provide me details I would appreciate the help

dirt diggler

you would NOT believe this ...

but I was going to contact Key Bank to ask about setting up this exact same deal


Turd Man (god I'd wish you change that name )


what problems have you had from the lenders??




good timing ... btw

the_turd_man

Hey dirt,
key bank only pays after the jobs done. Not the best out there looking for better options. On big jobs or if you have several it can really bind your cash flow.

P.s I kinda be proud of my ol knick name lol

dirt diggler

no kidding!

i could see it working for small biz's if you could take out a loan for the materials/job costs... overhead ... etc.

hell, but the interest you'd pay on the loan ... it'd add to your price ... probably blow yourself out of the water (especially if you're already where you need to be in pricing)


all this to tug their heartstrings with "Only ___ per month"

well, now they're paying you (who knows how much more) just to able to have you say "Only ____ per month"

i dunno ...

kinda like getting a ladder out to fix your tv



im a bit disillusioned now (I was rather excited about this today -- coincidentally was thinking about it earlier this morning)


but it sounds like it'd make things more complicated


anyone have more on this here??

the_turd_man

Digger you supposedly get paid 3 days after completion. Note I said supposedly. Now several of my jobs run $25 grand. Comeon we can all pLay online billionaires but in reallity can one fathom 5 or even 8 such jobs? I am not tearing into my personal finances to lend to the company to get repaid tommorow providing key bank doesnt go belly up or somehow deny the loan after the jobs done
I will not float that kind of cash and Even if I did I am not prepared to leverage my money against the faith of key bank regardless how long they have been doing this. You know a few grand I dont mind doing it and will wait but Theres serious flaws in their system. There are lenders who will cut the homeowner the check based off your bid and I am searching for a good one. Take it from ol turd man here whos been burned before. Get a deposit and a draw in the middle and final pmt when completed / inspected whatever. IN GOD WE TRUST ALL OTHERS PAY CASH

DamionR

I'm pretty sure EVERYONE will pay you once the job is completed. With financing... there will be a completion slip the customer must sign off on before you get your money. Kinda impossible to get that without the job being completed first.

dirt diggler

what a crock ...


I thought it worked like the bank would come out - hand a draw


boom, pass rough in inspection - another draw

next phase done - nother draw


etc etc

the_turd_man

Dirt Diggler,
It is a crock. Its one thing if your painting or something like that I can see it working. But for a guy like me it doesn't work and plainly Im sceptical! Best thing is for the HO to get a HELOC LOAN home equity line of credit. Theres lots of lenders who will do that and they get the money for the project in hand!

dougchips

For larger projects your lender (Key bank or other) can rework their morgage or do a secured loan, this creates some options. Talk to a lender.

swagled

When property is in need of repair - lenders have all these appraisal contingencies, etcetera that get in the way, and it slows everything down in the purchase.

But - if you can just buy "as is" for cash, things go easier. You may need to use a HELOC on your own house or family money, but just get posession of the subject property "in fee simple". Then make applications for the repair money.

The usual residential mortgage officer may not understand .. but just keep asking, you'll get referred to a small-business oriented one at some point. Especially if you have been repairing houses anyway as a sub. Your needs will not seem strange to the right party, when you find that person.

Banks lend money. It's their business. Don't assume you have to use a private party "hard money" loan and pay a bunch of points up front, or use a mortgage broker to shop you around for rehab funding.

DamionR

Have you looked into GE Finance? It's still after the job payments... but they're better at getting people approved.

They have a "second look" program which... (I'm not a fan of) - they basically charge you a percentage of the job to get the job approved.

it's an option though.

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TimWieneke

Turd man,
I think you shot me a PM on this. Become a "loan solicitor" for a mortgage broker. All you do is fill out another tax form. A "loan solicitor" brings the business to the broker, broker closes the deal. The broker makes his/her commission and the "loan solicitor" gets a 10% cut. The broker makes sure the money comes through as his "loan solicitor" brings him repeat business and he wants to keep him happy. The broker also doesn't get paid until loan is closed and money's out there. The only challenge you'll have is making sure the homeowner spends the money on the project and not furniture. We had one genious do that, blame his wife, and then had to refinance to pay off the addition....

Tim
And yes, I'm a mortgage broker now. Was an estimator for 3 years. Got in on this side of it.

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