Flippers: Hard Money Requirement Question
Looking for my first HML. I have two investment properties already (trad. financing) and I'm a contractor. Have cash, have a decent credit score. I could almost - but not quite - do a cash deal. Not ready to hit up wealthier investor friends until the 2nd or 3rd one. And I can nearly, but not quite, go to a traditional bank, if I hadn't done quite well in my last business and taken two years off - which ruined ability to qualify until next tax return.
The few HMLenders I've spoken with want all of the following. (Would you - OR DO YOU share all of this info?). I'm fine with most of it, but...
-They want an LLC, very few seem okay with DBA.
-All bank statements, including daily transactions, every page for 5 months. acct numbers on each account, etc., provide full and complete itemized bank statements for the past 5 months.
-Full loan application of course: Assets, Liabilities, Net worth, Full S.O.W.,
-Titles and Deeds on each property I own
-bio
-references
-Licences, (even though not required in upstate NY) and all proof of insurance.
-Operating Agreements, Articles of organization for your business
-Copies of identification
-A portfolio of before and after renovations
-Pay for their appraisal and credit check (5 or 600 dollars)
-List of subs AND copies of their insurance...
I could keep going...At what point do you start to wonder what is going on, and if all of it is necessary.? Is this safe, when you are trying to develop a relationship and learn about them as well? Trust goes both ways. Not all these HML's exactly on the radar. Half the time they seem to be just two people with a lot of money. Is this typical for a first HML? I am only asking for 80k on an amazing flip I just had an accepted offer on (a farm house in the Hudson Valley, commuting distance to NYC for only 100k (ARV from certified assessor 190k).
Thank you,