THE AL REPORT Volume 1, Number 5
Meeting Date: September 8, 2013
Welcome to THE AL REPORT. My name is AL. Here’s my report.
Seattle area FortuneBuilders Mastery students held their fifth Seattle Investors Club meeting from 4pm to 6pm, Sunday, September 8, at the Shoreline Conference Center, the Aurora room, as in the previous three meetings. Once again Coach Joe Bauer and Mastery student Julie Clark organized it. Many thanks to you for your commitment!
The agenda was to interact informally the first hour. Then Julie began an interactive discussion on the day’s topic: Hard Money Lenders.
I counted 15 people including two guests. Timothy invited Karen Call, an auction expert who is a potential source of properties. Al invited John Caudill who works closely with Ken on his rehab projects. John has also shown an interest in investing. He ‘showed us up’ by wearing a dress shirt and tie. I think that’s a Seattle Mastery Club first! Thanks for joining us! Look for their details at the bottom of this report.
At Joe’s suggestion, Al led the group in his first ever “CRUSH IT!!!” Julie began the second hour by passing out a 3 page list of some 35 hard money lenders that she had compiled. With an hour at her disposal she quickly went down the list asking the group for input as to what we may know about each company, what experience we may have had, etc.
Alphabetical List of Hard Money Lenders
Mostly in Washington
Alliance Commercial Credit Vancouver WA
Avatar Financial Group, LLC Seattle WA
Avenue Capital Solutions Seattle WA
Brookview Financial (see Mastery site)
CLS Mortgage Spokane WA
Custom Mortgage, LLC Seattle WA
Double Haul Capital Seattle WA
*Eastside Funding Kirkland WA
Empower Bellevue WA
Fairplay Bellevue, WA
Foundation Financial Partners Bellevue, WA
Greg Russell Loans.com
Hyak Financial Seattle WA
Island View Private Loan Fund 253.468.3569
Juniper Capital 425.677.2574
JWW & Associates Kirkland WA
Legacy Group Lending, Inc. Bellevue WA
Mortgage Equities Seattle, WA
Pacific Investors Group, LLC Bellevue, WA
Pacific Northwest Capital Partners
Pacific Northwest Trust – Dean Miller 425.222.5127
Pinnacle Hard Money 100K to 4million, 60% max LTV
PML Group, LLC Seattle WA
Private Capital NW Seattle WA 206.512.8400
*Pyatt Broadmark Management, LLC Seattle WA
Rain City Capital – Fred Rea 206.355.4969
Redmond Funding Group
*Seattle Funding Group Seattle WA
*Tri Star Finance Aaron Burgess, 206.854.5269 (from Ken)
Venture Capital Financial Seattle WA
Veristone Capital Funds Kirkland WA 425.828.9800
Wadot Capital Inc. Seattle WA
Westar Funding, Inc. Seattle WA
Discussion and comments:
Double Haul had wanted to joint venture on Timothy’s development deal before it fell through.
Fairfield reportedly does not do their own property analyses.
Pyatt Broadmark Management, LLC gets good marks from Dan.
Koa has used Seattle Funding Group for new construction. Fast response for draw process. Keep receipts.
Koa says Eastside Funding is good and worked with him on a deadline. Ken says they are ‘hard core’ if you miss deadlines.
Ken has been in touch with Tri Star Finance, Aaron Burgess, Bellevue WA
Al called Aaron during the meeting to see if he’d answer. He did, 2 to 4 pts and 7% to 11%. He also does long term loans. 206.854.5269
Dan says Fairfield Financial is expensive.
Donna recommends joining REAPS and registering with contractor services for benefits.
Karen asked if lenders care if you shop around.
Donna answered that you have to build a relationship; they all know we shop around.
Ken says the key to getting bigger draws is to bring the lender our receipts so they will reimburse. Build into you estimate a 10% cushion to get the numbers you need. Prices for materials are increasing, ex. sheetrock from $7 to $10.
Be sure you know the IRA rules about prohibited transactions and not working on or benefiting personally from a house owned by your IRA.
Tim, informal law student, pointed out that in ‘law’ there is no right or wrong, but degrees of risk. He says to be aware of this risk and live your life.
Also, that Tony Ku is a very active wholesaler, deal finder. Tony visited our last meeting.
Ken reminded the group that we aren’t doing this just to make money for ourselves, that we each have our own ‘why’, his involves leaving something for future family if at all possible.
Donna surprised us with her announcement that she and Kirk are able to provide short term ‘transaction loans’, in particular to wholesalers who need fast funding to make a deal happen. No points. Up to around 350K. Of course, this is totally dependent on fund availability. She says most transactional lenders charge 2.5 points.
Ken says that Tammie says that most hedge funds are ‘done’. However, Dan and Julie heard that they are still buying.
Kip shared about his wholesale deal in Monroe. The person who bought it from him for 170K replaced carpet and painted it and sold it for 255K. Kip made a new friend.
Donna buys the inherited house list for Snohomish County. About 90 on the list. She typically does 3 mailings. She has gotten 2 deals for a few hundred dollars this way.
Ken says reverse mortgage properties are supposed to be a trend now. Someone has inherited a house with one and is upside down. Banks often fail to respond quickly.
Karen shared her experience with bank fraud, and their being unable to prove they are foreclosing on the proper home.
Timothy showed some of us an ‘app’ for his smartphone called “Swatchmatic”. He calls it a ‘sweet color matching and pallet app.’ You just scan a color with your phone and it shows what colors match it, including the color names. No more guessing on room, curtain or trim colors. (You can even use it for clothing or multicolored hair.)
One guest reported liking our club meeting better than REAPS. Thanks for that vote of confidence. Let’s keep our group growing. Our next meeting is in early October. Watch for Joe’s announcement!
Disclaimer: Although I endeavor to be accurate, any reporting errors are solely the writer’s goof.
Feel free to let me know if you see any. Thank you. AF