any hard money lenders do 100%

7 Replies

Hello, I never did a flip before by myself. I  was looking up trying to find a hard money lender and came across this website.

 I can see a lot of info on here and will have to do a lot of reading on this website.

 I came across I had 720 Credit score til 2014 I had file bankrupcty like year and half ago so I know bank is not going to give loan. I work a lot on bank owned properties as a 1099 contractor for another company . have done work in past fixing up houses for an investor. Basically I know how to do all the work demo, painting, installing new drywall, tile floors etc. Instead just doing work for others I would like to get a cheap property a lot here in NJ and work on it and do a quick sell just not sure wth all these companies online if anyone had any exp with any hard lenders that would do a 100 % loan  houses looking at are like $50-75k and really only need like $15-25k in work and be able to sell for over $140,000.

Also places like from my understanding these are only cash deals??

Thanks in advance from the knowledgeable folks on here

do hard money charges fee's up front with no guarantee they will fund... but from what I hear they do fund deals for some folks.. so just know that you could lose 3 to 4k using them ..

those numbers are pretty stunning seems to me you could find a local cash partner and just split profits.. that's what I would do to start filling up your money and experience bucket

@James Mcardle I think @Jay Hinrichs has a great point.

Important to note, most HML will only take you seriously once you have a property under contract and are looking for funding. You will usually need to come up with 10-20% of the down payment, plus closing costs. There are pros and cons of using HML, BP is a great place to research.

That said, I have used a couple in NJ that are pretty easy to work with, you can PM for their info.

I'm currently working with do hard money to try and fund my first flip. They have been decent so far and it definitely isn't "100%" financing because there are some up front fees. The big one, is they want 3k upfront to join their program. This is refundable up to $2,350 dollars, they say they will reimburse the money after you repay your first loan. They use $650 dollars towards paying local experts to evaluate and inspect your property. I would say this was well worth the money, because I felt the evaluations were very professional and helpful. When you find a property you will fill out an analysis form, then they will give an estimate on how much they will fund and how much you will have to pay out of pocket. As of now our property falls into the 100% financing criteria, but that could change pending contractor bids. The way they try and help you finance any amount they will not cover is through gap financing. I think they just show some ways and how to find it but you have to qualify and secure it yourself. Also, unless you are a licensed contractor you cannot perform any of the work yourself. My opinion it seems to be a decent program for beginners. Everyone we deal with seem very helpful. I don't believe they are just trying to get your 3,000 dollars, but you will need to find a solid deal to get low money down financing. I am a newbie, but it's hard to believe that you would find any HML that you wouldn't have to pay some money out of pocket for.

@Nicholas Hamblen most HML do not charge up front and do the same service frankly... because its there money on the line at the end of the day... where the rub comes is in many markets the bar to entry of a 100% loan from DHM is so high it can never be achieved and the 3k is just an added expense.. and or as others have [posted here.. they paid the 3k they paid to have 2 or 3 properties evaluated at 650 a pop still did not get the financing they wanted 100% and were left with no money and a 4k experience and some lost EM on top of it all since the deals never closed..

so like I say can it happen yes.. but like U said if your having to shop for gap financing there are so many other options and most far less expensive.. 

Thanks for the replies I have found a few online that do 100% however not in NJ or need over 700 fico.

Yes I have my HIC license and can perform the work myself .  I know when a house is a good deal how much will take to fix it etc. However unlike most of the rest around here never did the purchase and selling myself I just have done the rehab work for others. I know takes money to make money and I know with these types of funding rates are going be high however I don't plan on keeping long so interest doesn't concern me. 

Disclaimer - Director of PR for

@Jay Hinrichs - you misstate our business when you cannot know of the specifics- but once again - no one needs to enroll in our 100% Financing System in order to get a loan from us, it is not a fee for a loan, no one "loses" money by working with us unless they choose not to take advantage of their enrollment. We don't keep charging the $650 evaluations over and over for every bad deal people bring us, we only order the evaluations once we have had a discussion with them about the deal and both parties agree to go forward. What is perhaps misunderstood is that most of the time when someone says we've "turned down" multiple deals that they have brought us the deal has never even made it that far through our system, the $650 has not been paid. Most of the time the initial numbers have been run and it wasn't profitable enough or was too risky and so we would not proceed. Most HML do NOT provide everything that we do for their potential borrowers. You know as well as I do that people are looking to make this easier than it is, that is one of the reasons they look for "turn-key" properties as well.

@Nicholas Hamblen I just looked at the deal you submitted and it looks great, and as long as your contractor bid comes back close to the numbers you submitted we should be able to come back with a good loan offer, if not 100% financing then with very little cash to close. We appreciate the opportunity to work with you!

@Jay Hinrichs I can understand peoples frustrations when they find a deal and they think they will get a 100% financed loan only to find out its going to cost them 10-20 grand down. I am definitely no expert on the program but I think if you ran a deal thru their analysis program, most would understand the criteria they are looking for, to fund a newbie. The client has to submit the go ahead on the $650 dollar evaluations and they have to be sure they have entered good numbers. My evaluations seemed very thorough and anything I missed they caught. I would suspect many of the disgruntled people find cheap properties that need a ton of work and plan to do the work themselves so they put a low rehab budget in the system. They will only allow licensed contractors to do the work, so that's probably why many of these deals go unfunded. They also offer you a wholesale deal if you find a great property but cannot afford the down payment they offer. Not exactly sure how that works, but it is a way to get the 2350 back and also make a few grand wholesaling. 

@Jacque Fairbourn Thank you! I feel like I got lucky finding this property in such a great neighborhood. We are setting them up as we speak and I feel we are pretty close with the numbers. My wife and I were nervous about the evaluations but I was very impressed with how well they did. They were truly experts of the neighborhood and Stefani has been doing great helping us out to get through the process.

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