Hard money lenders that don't require you to have assets?

8 Replies

I have spoken to a couple of HML that want you to have money in the bank. Are there any out there that lend solely on the property's ARV? A HML that is good for newbies? If so please pass on the info. If you are one please send me a message with your info. and requirements. 


I believe DoHardMoney does, but requires something like $6000 up front instead of the 20% - 30% down a HML requires.

Any good HML is going to require a borrower to have skin in the game. That is usually done by requiring a certain % of the purchase price down from the borrower. I have never required borrowers to have cash in the bank but they must put down at least 20% if not more. The no money down schemes are usually just that...and often looking to take YOUR money. Beware any HML that wants advance fees with the exception of an appraisal. If they are asking 1k, 2k...whatever in advance fees they are more than likely scammers. They will say anything to get your money and you will never hear from them once they have it.

@Ruth Bayang

I would bet the firm you mentioned has a less than stellar reputation! I know @Jay Hinrichs has mentioned one that actually does a very few deals to keep out of legal troubles, and it may be the one you refer to. There is really NO reason for advance fees with the exception of an appraisal. A HML, if charging points, certainly can wait for them to be paid at closing!

@John Thedford Thank you - 

Do you have any advice for someone new who wants to be successful with not a lot of cash? It feels like I am chasing my tail a bit. 

@Jocelyn Evans

Raising money is always the first issue that confronts investors. I would suggest looking for owner financed properties. Just because something is not advertised as such, you can make offers asking for owner finance. Also consider taking in a JV partner. Ask friends and family if they would be willing to help fund a deal. Just be careful with people advertising they are lenders. Some are honest, and others are not. There are lots of reputable lenders but remember---they want something from you...skin in the game. Without that, borrowers that made bad decisions will just walk. I did a loan to a man maybe 3 years back that made a horrible investment. Were it not for his collateral (a condo that was free and clear) he more than likely would have walked away. He lost maybe 50K before he was able to unload the property! This is exactly why lenders require skin in the game.

p.s.--don't give up. Keep working at finding money and eventually you will find it.  

Originally posted by @John Thedford :

@Ruth Bayang

I would bet the firm you mentioned has a less than stellar reputation!

A friend of mine has used that company, but I haven't. She seemed to be happy with them. The $6000 does include an appraisal fee of $600. Not sure what the other $5400 is for.

I would be very curious to know how many loans they do vs how many 6K fees they get!

I agree with @John Thedford - $6K in upfront fees seems very high.  The $600 appraisal fee also seems steep!  

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.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

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

Start here