Has Anyone used Lending Home for hard money ??

Question

Hi so I am recently using Lending Home for the first time on a flip i just purchased and they will be funding 100% of the rehab cost. However they have something called a draw for the funds that go towards renovations.  I was a little confused by the term so i hoping someone can shed some light on what that exactly means and how it is use. Any help or advice is greatly appreciated.

Shannon Cohan · Answer

Morning Jason! I've had a few clients work with them in the past. Personally I found them to be a little hard to work with. Communication was difficult which in turn caused closings get pushed back etc costing everyone money. I have a few lenders that I are my go to's for just  about everything. I'll send you a PM and drop some contact information for you there. Good luck on your flip!

Jason D. · Answer

@Lorenzo Harkins very common for hard money loans. It means they pay you for rehab after the work is inspected. You'll have to pay up front and be reimbursed after they inspect.

I do it in 3rds. I do about a third of the rehab, have the inspection, get reimbursed to continue on to the next third

Jay Hinrichs · Answer

yup that's how it works if you have no cash however if you don't have cash to front draws.. do be careful you could be undercapitalized which is quite risky.

Lorenzo Harkins · Answer

@Jason D. Awesome it looks like that’s exactly how mine will be as well. Is it possible to pay the contractor with a credit card then use the draw to pay off the balance ?

Joel Thompson · Answer

Hey Lorenzo, at our office we use that terminology to refer to the payments you receive to cover the renovations. Many lenders will give you a percentage draw upfront to help get you moving. Then, as you move along, receive payments based on the percentage project completed.

Your Loan Officer will be able to explain their specific process, and I'd suggest getting a specific run down of their draw disbursement process.

Has Anyone used Lending Home for hard money ??

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