One of my one-on-one coaching clients in Oklahoma City is fixing properties and flipping them. After looking at what he could accomplish using his own money versus using money from a hard money lender, he decided he needed to start talking with some hard money lenders.
One of those lenders is Red Dirt Lending. I always want to call them “Hard Dirt Lending” – I wish they’d change their name. They do have a website: http://www.reddirtlending.com/. I have not used this company as a source of funds. What I do know about them is they have a balloon payment at some point so you do have to either sell the property or refinance the loan.
Another is Krueger Investment Company. I have used Krueger Investment Company over the years…In fact, Al Krueger, who passed away some time ago, helped me get my business started back in the mid 1990’s. He was willing to loan me money when none of the banks would. The business is now run by his sons, one them (Jim) is located here in Oklahoma City. You can reach Jim at 405-235-9332.
What I know about Krueger Investment is they like to have their loans out for at least 12 months. They are willing to let the borrower pay them out long term.
I’d like your comments below, please, on two items.
The first type of comment I’d like to see is about other hard money lenders for Oklahoma City. Are there any other sources I didn’t mention?
The second type of comment I’d like to about Tulsa. Who lends hard money in Tulsa?
November 10th, 2009 at 11:49 am
Thanks soooooo much Scott for the very informative emails for potential investors and current investors. Great information and thoughts you have passed on to all. I passed on your email on the little $6,500. house however a couple of investors said it was a great buy but a bit to rough for them. I hope you have found someone to buy it.
Kind Regards, Arlene Marsh
Coldwell Banker
November 10th, 2009 at 6:43 pm
Great post, Scott. This is the kind of information I’d like to have for Northern Arizona, because this is the only reason I’m not snatching up properties right now!
Lin Ennis
EquityCycling.com
November 11th, 2009 at 6:09 am
We’ve never used hard money lenders but might consider it if we are not able to raise private lending. Secured by real estate (note and mortgage) for short term 90-180 days or longer term.
We would probably choose Krueger over red dirt due to the time limitations and high points. 5 points is NUTS! but it sure beats not having any money.
Does Krueger and RDL have better lending for experienced investors? I have heard from other investors that they are starting to back out of deals (not good).
November 11th, 2009 at 9:06 am
Great information….I’ve checked into RDL, but their terms aren’t very appealing unless you just really need something very short term. I’ve used Krueger on several properties and although they are tightening their standards a little, they have always worked with me on properties and are outstanding people to deal with. I like the longer terms because I don’t do a lot of properties and it sometimes takes me a little longer to get to renovate my own properties because I’m busy doing other peoples properties and projects. Call Jim at Krueger….you won’t be disappointed….tell him I told you to call.
November 16th, 2009 at 1:43 pm
Thanks for all the info!!
December 12th, 2009 at 12:51 am
Lots of of people blog about this issue but you wrote down really true words.