Project and Funding Needs Overview
Review Danny Hammond Bio Click Link
When the Russians invaded their peacful neighborhood, everyone believed that Volodymyr Zelensky the President of Ukraine would be in dire danger within hours. The U.S. offered to fly the President out of the country's capital and take him to somewhere safe outside of Ukraine.
Me included.
His answer to this offer of being flown to safety told us that he might be a man of much greater character than he had yet shown.
His answer to the offer of being flown to safety was short and sweet. "I need ammunition, not a ride."
I feel like that while I am trying to get funding for a real estate development project similar to the many I have done in 43 years. See Bio. I am uniquely qualified for this type of real estate work and I especially so, since I am the original developer having started the project in 1980
We made money from 1979 - 1988 selling to the middle class blue collar working family.
We were doing well when Congress passed what we all the 1986 Tax Law Act.
This Act devasted the entire Savings and Loan industry for the purpose of regulating the very industry they had deregulated earlier. This triggered what is known as the Savings and Loan Crisis.
I still had plenty of Mr. Buyers who wanted to buy properties, but the Lender herd had been thinned more than not. No one was left to fund a deal.
I don't need an offer of a loan. I need a lending partner that can really find loans for the variety of needs I have today and in the future. I owe no money on my properties. They are free and clear. I would have never dreamed that about most of the broker agents I have visited with did not know of the term free and clear.
I have had no troubles ever since then that were caused by me. I have had problems which gave little warning of problems or issues.
I have had a nice career, always finding a way to the top. But, I am resentful.
For 12 years beginning in 2011, I have borrowed no money. None at all. I paid cash or worked out trades, but I borrowed no money. I have cleaned up a lot of credit in my life and I knew that there were no FICO score algorithms for someone who had no credit accounts. I thought I didn't care. I am learning that I do. Mine will be easier, but it will take time.
I had paid cash for the properties I am wanting to use for collateral. I had never seen the value of credit scores being used as the one most important reason to loan someone money. Welcome to the new millenium, 25 years ago.
I paid when I took ownership of the properties mentioned here in 2011. It has helped my bank balances to pay cash, but, it was hard on my credit.
I have experience, familiarity, and a good track record. I also can put up free and clear properties, so I am not leveraged at all. I can get by with 40% to 60% LTVs while the commercial lending ndustry sends me hundreds of offers for 90% to 105% loans if I have nothing but a 680 score.
If you ask me what I want and how long I need the loan that would only answer one question at a time.
I have several different needs. I think I know some of what you do, but I don't know if I am even on the right track. You can ask me some questions that I have different answers for depending on what loan and what terms you can find for me.
While building homes and multi-family units I did not pay an interest rate on construction loans because these were neglected IRAs neglected by the beneficiary doctors and attorneys and they had not contributed to their IRA, the loan would pay off in 5 to 6 months. Interest earned would not even be interesting to them.
So, I offered them a fee that made them more money than interest and made it fun. I never had anyone who didn't roll over to do the next one. The Self-Directed IRA beneficiary put up a portion of the money to buy lots and construction loans and the Trustee that was chosen did their part, I did mine and when I closed the sale of the house I would email or phone the beneficiary and tell him how much he made and ask him if he wanted to do another. They always put the money back in to do another one.
But, I have not maintained my network and we have all grown older.
I guess I thought we would all live for ever, These guys were 10 to 15 these guys were all 10 -15 years older than me. I did seminars and they attended them. I can do the same today with Zoom. But, I will make more money building and selling than trying to keep all of it to myself.
Surely, you are familiar with things that sound like this. I have been offered deals but no one has offered me anything that left me a pathway to success. No one has shown any interest in the project. They were all referral guys they just wanted my social security number, and I wanted a long term loan guy.
Can you carve out some time to visit about what you do and what I do, so we can get a better idea of what might fit. I can't get a lender to order an appraisal. When I say I'm going to pay for my own they always try to stop me. I had a bank that made me a 9% LTV and it helped with some urgent matters, but I thought if I performed they might go further.
Nope.
They said they wanted me as their customer That isn't what they wanted. They wanted me to somehow get going for $35,000 and when I sold a house I would send them my buyer for a home loan. That was how I saw it to, but I'm not going to send anyone to someone who does not want work.
If you don't have time to talk about what you like to do in a deal, I understand that. Maybe another deal another time. But, I feel like I should fit in about anywhere. I might just need some advice.
I am not just looking for one loan. I am looking for one or more loans first. But, I could be building tomorrow on the lots that can be built on now that I have no current loans now.
Later, I will need some portion of the construction loans. Maybe some loan acquisition loans or investors. In 2012 I had the beneficiaries of Self-Directed IRAs for the 20% requirement for construction loans. That worked very well. I have no idea what would fit today.
What is below will help you some, but there are extenuating circumstances. I have started loan programs where I can't live in the house. Ok, I can accomodate that, but it is not what I want. I have had guys who say they are working on loans and I can live in the house.
I am even looking at reverse mortgages, but the terms are awful. I need to get working. If that is all there is, it is better than sitting.
I have several needs, but they go in a straight line. I have never had trouble doing anything that I could dream up. I want my business partners and vendors to make money. I want long mutually beneficial relationships. I don't want to argue or have to watch my back.
I am on my 3rd year of setting up the exact same thing I have done dozens of times, but, there are gaps in the trail. Anyway, I have to jump on something else. I just took retooled a website and I published overviews and details of what I might want. I can change them quickly to match a deal we are both interested in.
I am not interested in sending my SS # to any more people that don't care about what their client is doing.
What do you do that I can adapt to?
My bank payment of $331 a month is all I owe. I have only paid cash for cars? I had never met a banker that wouldn't rush to build a relationship and make loans with free and clear property starting with the first fundings. A 7% loan to value and I did everything I said I would cheaper than I said. I sent them weekly reports. Now the bank is my problem. They seem content to wait for another Borrower come in there door. That is what I did. But, I don't get the lack of pursuit of customer retention.
All of the photos and proformas you might need are available on my websites.
It is really a set of notes that can be edited quickly. It was written for different things people wanted to get for them for over more than 40 years.
I may have thought of another way. Or I have accomplished something. So I was going to bring it up to date when I understood. If you see something let me know. I really would like to figure out your way. You do what you do every day. Why would I tell you how to do my deal.
I have registered a new LLC that has no history. The name is Boulevard at Eagle Bay, LLC. IIt is a sole proprieter LLC and I am the manager and I own 100% of the stock.