"Do Hard Money" - Anyone Familiar?

[Tomiko Graves]

Has anyone used the hard money lending company, 'Do Hard Money' before?  Is it standard for HMLs to ask for a one-time deposit of $3000 that includes: 1) evaluators going out to property to determine whether it's a good deal, 2) enrollment fee and 3) "skin in the game"?

After the first deal is complete, they refund $2,350.  

[Jay Hinrichs]

Originally posted by @Ryan Wright:

Disclosure- CEO DoHardMoney

@Ryan Blake - no one 'loses' the $3000 'deposit' because it is not a deposit, but the enrollment cost for the progema in which they enrolled. If they give up because finding a property was harder than they thought is was going to be they still have the program that they paid for. They still have the software, the deal desk team, the phone support etc.We have some people come here to this forum claimer that we would not fund any deals for them when we have even extended a loan offer to them on properties. Not every deal we fund will qualify for no cash to, no do we ever promise that if they enroll that we will fund a deal that does not meet that criteria at 100% just because people are enrolled. Most of the deals we fund do require some cash to close, but there are many where we can fund 100% of the purchase price, 100% of the rehab costs and 100% of the loan costs. 

What is often misunderstood is that when we look at the profitability of a deal we look at all costs, even those not part of our rates or fees, like holding costs and agent commissions.If a deal is not profitable after those things have been considered then we don't extend funding. So other lenders may laon on a property that we will not because they are not concerned with whether or not the borrower makes a profit, only with their costs being covered. 

When we take on the risk of lending to someone who has never flipped a house before, or someone with a low (say 580) credit score, or of funding 100% of the entire deal we do need that borrower to utilize our Find-Fund-Flip System. If a borrower doesn't fall into one of those higher risk categories (or their partner does not) they need not enroll. We can extend funding to them through one of our other loan programs. 

We are not perfect, nor are we the best lender for every investor, but no one 'loses' a deposit.

Also- to address the local lender question, we use 2-3 independent evaluators in the immediate area to help us determine the profitability of a deal. These are professionals who have no stake in whether or not a deal will receive funding. Before we extend a loan offer 18-24 comps are required. We look at not just the comps, but we also need to be relatively sure that the property can sell within the loan term, which makes the guidelines for that type of loan very tight. Many times the deal itself will qualify for another of our loan options with a down payment or monthly payments, but the borrower either doesn't have the cash needed or cannot qualify because of credit.  If you want 100% purchases price funding, 100% rehab cost funding, 100% loan cost funding and no monthly payments the deal must meet those very tight guidelines.

thanks for chiming in .. as you probably know the lady who was the owner or last CEO had a hard time spelling out what they did when all the complaints came in from those who thought 3k basically bought them the right to a loan.. and that they would get their 3k back once you funded one.. It took Kristi Hawkins to flush out how you actually do these deals with the LLC and such.. but she still thinks you dont need the 3k however person after person jumps on here and says its not true .. so i suppose if you don't require the 3k you probably have a loan product which require some sort of cash down like every other lender on the planet.. I get that 100% financing exists i have done it for 20 plus years .. just never charged people for the privilege to borrow money from me.. but i will say for my 100% financing i get paid a premium. and I am not looking for new beginners unless I like them or they are in a market I have a lot of support in.

Just be nice if you guys spit out what you do.. I have not checked rip off report to see if your there.. but on BP you have some folks that are not happy.. and who lost the 3k ( bought your systems) and lost your 600 dollar inspection fees multiple times and lost EM because the deal was not good enough.. so NO money down advertising led to these folks losing 3 to 5k . so you can see the heart burn..