Do Hard Money - Hard Money Lenders

Real Estate Agent · Red Bank, NJ · Member since 2018 · 11 posts · 9 votes

Had the displeasure of dealing with this company. After several weeks of not hearing back about a home appraisal (home is under contract FYI) I reached out to find out what the hold up was. Come to find out they couldn’t get a hold of an appraiser (difficult to believe in the state of NJ), my advisor left the company, and more rudely forget to communicate this with me at any given time.

If you are looking for honest, respectful, and courteous this isn’t the company sadly.

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Lender · Salt Lake City, UT · Member since 2012 · 714 posts · 169 votes

I think the problem really is the "too good to be true" phenomena in real estate financing. Everyone wants to believe that you can use "Other People's Money" and a lot of the schools and education programs push this so they can sell their curriculum, "Oh you don't need any money to invest in real estate, you just use OPM." It's just blowing smoke and in reality, unless you are a seasoned real estate investor with a track record, no private money lender is just going to throw money at you. If you are a newbie, a private lender like myself wants to see some "skin in the game," even if it's your grandma's money or a partner's money. So many new real estate investors contact companies like this because they drank the kool-aid that so many of these education companies and real estate schools have sold them and they really believe in the 100% financing scams. Even $3,000 is money you've got to come up with to get the 100% financing. Many newbies will borrow that $3,000 from someone and then lose it in the process of trying to get 100% financing. I think these real estate schools and seminars need to STOP selling this dream to newbies that they don't need any money to invest. You certainly do need money to invest in real estate, and anyone that says you don't lives in a different kind of reality than I do! "Find a good deal and the money is the easy part." Only if you have a track record and have experience. No one is throwing money at newbies unless they are naive and inexperienced themselves. As a private lender, newbies come to me with their dreams and yes I can lend them 100% of purchase price but they still need to bring in money for loan fees and repairs. Not to mention making the payments until the house sells. Or if I lend them 90% of purchase price and 90% of repairs, they still need to come up with 10% of purchase and 10% of repairs!! There's no free ride. I think the reason that companies like Do Hard Money stay in business is because so many newbies believe in something that is too good to be true, e.g. I don't need any money to invest in real estate. YES YOU DO. Period. Again, unless you have a good track record in real estate investing no one is going to be throwing money at you.

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Nate Marshall
Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 740 votes
7y
@Jay Hinrichs The only lender I recommend that does 100% is COGO but you only get it if you do one of their master courses with Lee Arnold. I am doing the Master Broker in the fall. They also do 100% tuition reimbursement after a few deals if they're completed within a year.
One of the benefits to them is they doa 3 day funding tour. They're in Denver this weekend so unlike the fast talking seminar promoters who ask for a credit card in just about 2 hours attendees get to spend 3 days with them. They actually teach some things and do a bus tour to 2 properties where they have a realtor at who can talk to students about making offers.
The only company I recommend!
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Nate Marshall:
@Jay Hinrichs The only lender I recommend that does 100% is COGO but you only get it if you do one of their master courses with Lee Arnold. I am doing the Master Broker in the fall. They also do 100% tuition reimbursement after a few deals if they're completed within a year.
One of the benefits to them is they doa 3 day funding tour. They're in Denver this weekend so unlike the fast talking seminar promoters who ask for a credit card in just about 2 hours attendees get to spend 3 days with them. They actually teach some things and do a bus tour to 2 properties where they have a realtor at who can talk to students about making offers.
The only company I recommend!

I have mixed thoughts on Cogo I have had a few of my clients try to refi with them only to take forever and not happen.. I fund 100% for the right vendor.. so I am another one.. but I don't charge a dime up front.. Cogo is another form of guru frankly anyone selling anything up front in the hopes of getting something is simply a for profit trainer.. and nothing wrong with that.. I have funded literally thousands of deals for Montalongo students.. rich dad students.. Vertucci students etc.. the process is the same 3 day seminar pay some form of money to go and then have access to HML.. the issue is to do 100% you have to find deals that are so good that they are rare and hard to fine for the average person to the point that you pay the fee and never can get a deal good enough..

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Daniel Hennek
Lender · Lewis, CO · Member since 2017 · 218 posts · 159 votes
7y
Any lender charging money up front more than $500 is highly suspect, no exceptions. That's called a red flag.

There are plenty of mortgage professionals of all types that all want to find you a loan with absolutely no upfront costs besides you paying an appraisal, which doesn't go to the lender.

Hard money/Non-QM loans are going to want to make their fees upfront because they just aren't going to be profitable enough based on interest because they are short term loans. However, any decent lender won't charge those fees until consummation of the deal at closing. If any lender ever asks you for more than $500 up front, mostly for an appraisal, then look elsewhere because they're not a lender. Lenders make money when deals close, they don't make money off upfront fees outside of closing. Go with a lender that aligns with your interests and doesn't get paid until closing; they get paid when you get what you want.

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Account Closed
Member since 2020 · 4 posts · 0 votes
6y
What's a normal rate for hard money? I can't see paying 12% when banks lend at 3???
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Odie Ayaga
Specialist · Delran, NJ · Member since 2016 · 2k+ posts · 951 votes
6y
8-12%. 3% is low even for owner-occupied, but non-owner occupied from a bank would be higher and if it needs rehab you'll have a hard time qualifying @Account Closed. Would you pay 12% for 100% financing if the alternative was 5% for 70% financing? It's comparing apples to oranges.
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Brian Harper
Flipper/Rehabber · Severn, MD · Member since 2019 · 3 posts · 2 votes
6y
Wow! I have a meeting scheduled with them tomorrow night and was prepared to do the $3k initial cost! What’s a good alternative, you guys are scaring me here!
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Brian Harper
Flipper/Rehabber · Severn, MD · Member since 2019 · 3 posts · 2 votes
6y
@Travis Nagler wow you just saved us a lot of trouble with this post
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Account Closed
Rental Property Investor · Usa · Member since 2020 · 74 posts · 80 votes
6y
@Jay Hinrichs hello. Would you recommend Visio as a hml? Or another company?
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Gregory Harris
Member since 2021 · 1 post · 0 votes
4y
Quote from @Marlene Mrad:

@Sean Cromarty I had a problem with the. Coming thru as well when I was under contract ended up saving my deal using a different lender that made it happen with no problems... I advise anyone one I talk to to stay away from DHM

Who was the different lender that you chose to use
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Marlene Mrad
Flipper/Rehabber · Hackettstown, NJ · Member since 2010 · 7 posts · 1 vote
4y
@Gregory Harris
Hey I used Asset Based Lending (ABL) they are truly really great and have used them for all my deals so far. Currently on deal #6 they have not let me down yet. Very quick and on top of it
Sorry for the late response haven’t been in in a while
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Solomon Suleymanov
Member since 2020 · 6 posts · 2 votes
4y
They sound like brokers, not lenders. I do not charge any upfront fees and close NJ deals within 5-7 business days! Feel free to reach out if you have any questions or would like to go over a deal.
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