I'm looking for funding for my first flip. Has anyone used DoHardMoney. If so, what was you experience like with them? Other than the high origination fee, I'm gravely concerned about paying them $3K to get my first deal done.
What are you paying $3k for? On a single family flip, the only out of pocket fees should be an appraisal, and then there are fees taken out of funding proceeds that should be clearly defined in an offer. I'll be happy to take a look and help. Let's connect.
@Chris Ellis DOHardmoney advertises zero money down HML so you can imagine they get all those with very limited capital that are dreaming of the 100% financing.
for this the charge 3k up front to basically buy their materials with the promise that they will refund the money on your first funding.
then according to others there is a 500 to 600 .00 submission fee..
rates are in the 20 to 25% apr range with points and interest... they are based in Utah.
so its semi Guru back end stuff you see come out of Utah..
and its a great way for a company to make 3k for their turn downs.
there has been many a post were borrowers put up the 3k paid for numerous submissions and none of the deals were good enough for their underwriting and they are out all that money.. not to mention a few that lost EM as well thinking they had the loan secured.. now this is documented on numerous BP threads on the company.
on the flip side I have seen a few post were folks actually got a loan.
Also the owners will come on and say what do you expect this is 100% financing and we are taking all this risk with what are basically and pretty well guaranteed newbies doing their first deal.. if they were not they would be at Lima One or lending home or someone like that.
So that's the skinny on this company.. I suspect they make a good amount of their revenue on flipping dreamers who risk the 3k.
but if you think about it from Do hard monies point of view for sure they are going to be ultra conservative I don't blame them and they are only going to fund screaming deals where the borrower has Zero skin in the game other than the 3k and 600 fee and there are most likely other little fee's like title and escrow..
but show me a beginner who can land screaming deals.. sure some will stumble on them. but in my 40 years of lending HM most beginners have no clue as to what a deal is.
and therefore this company is killing it making 3600 on turn downs.. pretty sweet if you can get away with it. You may have another thought on the matter.
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