All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Start here
  • Education
    Forums

    Learn from and contribute to 659K+ real estate discussions

    BiggerPockets Podcast

    Listen to weekly interviews with investors & entrepreneurs

    BiggerPockets Blog

    Delve into 8,800+ articles by experienced investors

    Member Blogs

    Read original articles by BiggerPockets members

    Guides

    Master the ins and outs of fundamental real estate topics

    The Money Show

    Listen to weekly interviews that will help get your financial house in order

    Webinars

    Sign up for this week's free webinars hosted by experienced investors or view previously-held webinar recordings in the Archives

    Videos

    Browse our library of real estate related video content

    Free Course

    Experience The Financial Independence Blueprint video series - a free four-part video series

    Topics
    Property Management Property Types Finance Strategy Finding Deals Business Operations
  • Network
    Members

    Search over 1,270,000 members across BiggerPockets

    Companies

    Explore over 31,000 real estate-related companies

    Real Estate Agents

    Find an investor-friendly agent near you

    Hard Money Lenders

    Pinpoint lenders near you with our nationwide database

    Events

    Find upcoming real estate events and meetups near you

    Jobs

    Browse real estate job opportunities in your area

  • Tools

    Calculators

    • Fix and Flip
    • Rental Property
    • BRRRR
    • Rehab Estimator
    • Wholesaling
    • Mortgage Payment
    • 70% Rule
    • Airbnb Calculator

    Services

    Find a Contractor Get a Mortgage Loan Tenant Screening External Link

    Additional Tools

    FilePlace

    Download presentations, spreadsheets, contracts & more

    REI Resources

    Dig into thousands of curated real estate tools & resources

    Calculators
  • Marketplace
    Properties For Sale

    Buy and sell real estate deals or seek out partners, financing, etc.

    Find Foreclosures External Link

    Search this comprehensive database of nationwide foreclosures

    Ads, Jobs, and Other

    Advertise your real estate business, deals, financing & more

  • Bookstore

    Featured Book

    Recession-Proof Real Estate Investing book cover

    Recession-Proof Real Estate Investing

    This easy-to-follow guide will show you how to make money during all of the market’s twists and turns! Accomplished investor J Scott dives into the theory of economic cycles and the real-world strategies for harnessing them to your advantage.

    Get the book now

    Real Estate Books

    • Flipping and Estimating Bundle
    • How to Invest in Real Estate
    • How to Sell Your Home
    • See All Books
    Real Estate Books

    Shop books covering real estate investing and personal finance.

    Lease Agreement Package New

    Don't spend $1,000 on a lawyer!

    Real Estate Forms

    Lease Agreement Package New

    Don't spend $1,000 on a lawyer!

  • Plans
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books Washington
ForumsArrowBuying & Selling Real Estate DiscussionArrowMortgages and hard money
  • Newest Posts Arrow Down Light
    • Newest Posts
    • Unanswered Discussions
  • Trending Arrow Down Light
    • Top Discussions
    • Trending Discussions
  • General Real Estate Arrow Down Light
    • Local Real Estate Forums

      Real Estate Forums near you

      • New York City Real Estate Forum 1.3K Posts 191 Discussions
      • Norfolk Real Estate Forum 350 Posts 35 Discussions
      • Baltimore Real Estate Forum 1.8K Posts 223 Discussions
      • Norwalk Real Estate Forum 7 Posts -1 Discussions

      View all Local Real Estate forums

    • General Info
      • Real Estate Success Stories 77K Posts 3.7K Discussions
      • Real Estate Not-So-Successful Stories 523 Posts 41 Discussions
      • BiggerPockets Summer Reading List 92 Posts 14 Discussions
      • New Member Introductions 488K Posts 56K Discussions
      • Real Estate Quizzes 696 Posts 21 Discussions
      • BiggerPockets Money Podcast 675 Posts 50 Discussions
      • BiggerPockets Exclusive PRO Area 16K Posts 3.0K Discussions
      • FAQ Forum 132 Posts 9 Discussions
      • BiggerPockets Webinar Discussion Forum 459 Posts 15 Discussions
      • Questions About BiggerPockets and Official Site Announcements 42K Posts 4.1K Discussions
    • General Real Estate
      • Investor Deal Diaries 17K Posts 863 Discussions
      • Completed Deal Diaries 5.6K Posts 1.9K Discussions
      • Renters Discussion 44K Posts 5.1K Discussions
      • Military Investing 5.4K Posts 530 Discussions
      • Construction & Remodeling Diaries 6.1K Posts 1.0K Discussions
      • Buying & Selling Real Estate Discussion 423K Posts 58K Discussions
      • Do it Yourself 32K Posts 3.5K Discussions
      • Get Foreclosure Help - Stop Foreclosure Forum 6.6K Posts 910 Discussions
      • Home Owner Association (HOA) Issues & Problems Forum 6.2K Posts 910 Discussions
    • Reviews & Feedback
      • Real Estate Deal Analysis and Advice 131K Posts 18K Discussions
      • Ask About A Real Estate Company 24K Posts 2.7K Discussions
      • Real Estate Guru, Book & Course Reviews and Discussions 28K Posts 2.9K Discussions
    • Investor Basics
      • Real Estate Investor Marketing Help & Advice 46K Posts 6.5K Discussions
      • General Real Estate Investing 144K Posts 19K Discussions
      • Starting Out 290K Posts 41K Discussions
      • Investor Psychology 21K Posts 1.6K Discussions
    • Landlord & Tenant Forums
      • Mobile Homes & Mobile Home Park Investing 19K Posts 2.3K Discussions
      • Landlord Forums & Rental Property Questions 358K Posts 39K Discussions
    • Foreclosures
      • General Foreclosure & Pre-Foreclosure Forums 33K Posts 5.2K Discussions
      • REOs 17K Posts 2.2K Discussions
      • Short Sales Questions 17K Posts 2.1K Discussions
      • HUD, VA, and Tax Sales 10K Posts 1.5K Discussions
    • Real Estate Strategies
      • Real Estate Development & New Home Construction 19K Posts 2.6K Discussions
      • Tax Liens, Notes, Paper, & Cash Flows Discussion 34K Posts 3.9K Discussions
      • Rehabbing and House Flipping 110K Posts 13K Discussions
      • Rent to Own a.k.a. Lease Purchase, Lease Options 15K Posts 2.3K Discussions
      • Short-Term and Vacation Rental Discussion 22K Posts 2.0K Discussions
      • Real Estate Wholesaling Questions & Answers 137K Posts 18K Discussions
      • Innovative Strategies 27K Posts 3.4K Discussions
      • 1031 Exchanges 8.7K Posts 1.4K Discussions
    • Commercial Real Estate
      • Multi-Family and Apartment Investing Forums 96K Posts 10K Discussions
      • Commercial Real Estate Investing Forum 36K Posts 4.8K Discussions
    • Business Basics
      • Goals, Business Plans & Entities 25K Posts 3.5K Discussions
    • Real Estate Technology and the Internet
      • Real Estate Technology, Social Media & Blogging 16K Posts 2.3K Discussions
    • Loans, Mortgages, Credit Lines
      • Private Lending & Conventional Mortgage Advice 105K Posts 14K Discussions
      • Creative Real Estate Financing Forum 50K Posts 7.5K Discussions
      • Real Estate Crowdfunding Forums 5.6K Posts 384 Discussions
    • Financial, Tax, and Legal
      • Property Insurance Questions & Discussions 11K Posts 1.8K Discussions
      • Tax, Legal Issues, Contracts, Self-Directed IRA 100K Posts 15K Discussions
      • Personal Finance Forum 18K Posts 2.0K Discussions
    • Real Estate Professionals
      • Contractors 18K Posts 3.7K Discussions
      • Real Estate Agent Forums 47K Posts 7.0K Discussions
      • Bankers, Lenders, and Mortgage Brokers 12K Posts 1.9K Discussions
    • Real Estate Marketplace
      • Marketplace 227K Posts 88K Discussions
      • Real Estate Events and Happenings 57K Posts 12K Discussions
    • Off Topic
      • Housing News & Real Estate Market Discussions 15K Posts 1.8K Discussions
      • BiggerPockets Real Estate Investing Summit 2.0K Posts 107 Discussions
      • Off-Topic 43K Posts 5.3K Discussions
Start a Discussion

Mortgages and hard money

2 Replies

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
Rotate Log in or sign up to reply
  • 1
Zaahid Holloman
  • 6 posts
  • 1 votes

Zaahid Holloman
from Philadelphia, Pennsylvania

posted over 3 years ago
I'm curious to know. If you have a property that is under a mortgage, is it possible to get a hard money loan on top of the mortgage to make some renovations to the property ? I don't know if it varies with different states but I'm in Philadelphia, PA. Thank you
Alberto Camacho
  • 179 posts
  • 47 votes

Alberto Camacho
Investor from Flower Mound, Texas

replied over 3 years ago

Speak to local lenders to find programs available for your situation. You might be eligible for a HELOC.

Typically a HM loan is done when a conventional lender wont and\or when the ARV allows you to roll in repair costs. HM lenders have programs that lend 70% or 75% on the ARV. On a conventional normally they wont roll in repairs so we end up with additional out of pocket costs.

Consider a property with 100K ARV and a purchase price of 50K. A HM lender will loan you 70K. You would buy the property and have draws on the remaining funds to pay the contractors. Once completed you would refi with a conventional loan at 75% LTV or 75K. Using HM you could potentially be out of pocket with 0 costs with the right deal.

HM does have its own fees. What out for back end points, inspection and draw fees. If done incorrectly you could be stuck in HM with a much higher rate. Holding costs are something that can kill profits quickly. I know of one investor that didn't do as originally planned and the ARV at the refi came in low.

Jon Holdman
  • 22K posts
  • 14K votes

Jon Holdman (Moderator) -
Rental Property Investor from Mercer Island, WA

replied over 3 years ago

Hard money lenders rarely, if ever, lend in second position. Your best bet is a LOC or something from a bank. Those are tough to get for investment properties. If you're looking for the name of a lender you will need to post in the Marketplace.

You're not going to get 100% of the value of the property.  Maybe 80%, maybe a bit less than that.  So, if you have a property worth $100K with an existing $80K mortgage you're probably not going to find a lender who will allow you to use that as collateral.  Even though you have $20K equity on paper, selling will eat up almost half of that.  If the value drops 10% you no longer have any real equity.

  • 1

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Sign up below to download the eBook for FREE today!

Download the eBook Now

Lock We hate spam just as much as you

Top Contributors

Russell Brazil
Russell Brazil
Rockville, MD
7.63
Score
Jay Hinrichs
Jay Hinrichs
Lake Oswego OR Summerlin, NV
7.45
Score
Chris Hanisco
Chris Hanisco
New England
6.38
Score
Jonathan Taylor Smith
Jonathan Taylor Smith
Raleigh / Durham (Triangle), NC
6.07
Score
David Waddleton
David Waddleton
Los Angeles
3.87
Score

Trending Discussions

  • Should I report this agent to the Board of Realtors or?
    123 Replies
  • California to make "Solar "mandatory for new Homes!!!!!!
    82 Replies
  • How many of you have bought a note this year ?
    46 Replies
  • Sceptical Wife, Who Asked for Reassurance Before Investing
    28 Replies
  • Should we wait or go for it?
    48 Replies
Close Thin

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here

Already have an account? Click here to log in

Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • Perks
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • Google+
  • YouTube
  • Instagram
© 2004-2019 BiggerPockets, LLC. All Rights Reserved.