Is DoHardMoney a legit company and do what they say they will do?

21 Replies

DoHardMoney.com says that for a discounted fee of $1395 they will guarantee that they coach & work with us to obtain cash lines of credit with various banks (now credit cards) since they don't lend in our state. Any words of advise on this?

Meant "not" credit card lines of credit. They say they can guarantee that they can coach & help us get a minimum of $100,000 in cash lines of credit regardless of how long it takes.

In regards to dohardmoney.com

I have found their service to not be satisfactory. It is well organized but it doesn't work like they say. I have submitted several deals at 650 dollars per inspection BPO and I have yet to close a deal and for really petty reasons. They even said oh it's not a problem with us but with you...we have several other investors in your market who are closing deals with us and they have yet to provide references. Keep your money find a real lender it's an awesome waste of time and effort. Especially when you factor in EMD and other costs out of pocket.

DO NOT USE DoHardMoney.com Once you send them your hard earned cash, you can never get it back. They will tell you they can get your deal funded, but their criteria is almost impossible to find a deal with. I actually found DoHardMoney.com on biggerpockets so I Assumed they would be a great company to deal with, I definitely should have done my homework. I'm wondering what my legal recourse is for recovering the $3000.00 I sent them??? Best way to get back at dishonest companies is to leave reviews.

@James Henrie there has been a lot of back and forth with this company.. most of us that are very expreinced at HML have called these folks out a little bit...

big up front fee's are just not done unless your in the business of primarily making money on up front fees and coaching.. Not to say they never fund but its fair to say your situation is not unique.

Medium ksqoekox 400x400Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222

@Jay Hinrichs ,

I agree with you regarding upfront fees. Before starting our own HML company, we have dealt with several other companies that charge large upfront fees only to drag out the process and not end up actually funding.

Unfortunately, a lot of people/companies make a lot of money this way in lending and teaching.

That is the exact reason why we limit our upfront fees to $250 payable at the property inspection. All remaining fees are paid at closing on the Closing Document

Medium ashmorepartned24ar04ap13zl cleveland4a mdmAnthony Susco, Ashmore Partners | [email protected]

ARV: 150k

Purchase Price: 80k + 25k repair = 105k all in price *meeting the 70% ARV DoHardMoney requires

DoHardMoney Lending Rates and Fees:

  • $3000 initial deposit. If client is not satisfied with quality can call and ask for refund within 3 business dates "ensures the Client remains committed to moving forward until the Client's first profitable deal is funded and paid off"-Purchase Agreement Client signs
  • 680 Credit Score Originating fee 5.5 points w/ 1.25% monthly interest rate
  • 679 credit score & lower Originating fee 6.5 points w/ 1.5% monthly interest rate

**Mortgage points, also known as discount points, are fees paid directly to the lender at closing in exchange for a reduced interest rate. One point costs 1 percent of your mortgage amount (or $1,000 for every $100,000).

Breakdown:

NOTHING IS DUE UNTIL CLOSING.150 days after purchase the loan is due or 1% extension will be added. You can extend up to (3) times.

105k* 5.5points = $5775

105k*1.25%= $1312.50          $1312.50*5months= $6562.50

TOTAL=$12,337.50 Loan Holding Cost.

150k-105k= 45k Net income

Calculate Holding Cost. . . .

$45k-$12,337.50 =$32.6k -----------27% profit deduction


* does not include any other fees that may come up



They're the absolute worst to deal with, and they'll sell you a dream that will never come to fruition.  If you want a 100% funded deal, you better believe in Unicorns... 

I recently brought them a deal that was close to being 100% funded. I had two comps, ON THE SAME STREET, 10 houses down, same layout of home I had under contract, both went for 169 and 166 respectively. One of the "independent evaluators" they brought in comped houses almost a mile away in Chicago. In Chicago, that's FAR, and absurd, and was virtually in a different neighborhood. The comps one of the evaluators provided weren't even the same caliber remodel, nor the same size, and they had put the ARV of only 135 solely based on that. When the other two evaluators came in at 169, and 179 ARV. They then said I had to bring 25k cash to close, and even after a value audit, they only gave me a 145 ARV. This was a slam dunk, does not get any better kind of deal, and yet they wouldn't budge. I truly believe 100%

The customer service people are so fake, they put on an act trying to make it look like they're pulling for you. It's a total scam, RUN and HIDE FROM THESE PEOPLE!!!  They call/text you 3x a day trying to get you to sign up, than you never hear from them again. 

They'll also post deals on their Facebook or through email where the buyer doesn't have the cash to close, and they'll advertise it as Rehab:100% funded Purchase:100%, than when they post the numbers and you go to cash to close, and it's sitting at 22k.... Total Scumbags!

Director of PR for DoHardMoney.com

@Brent Tomczak I am sorry you've experienced this frustration. It will take me some time to review your deal and all of the notes, phone calls etc. relating to it as well as talking to all of the involved team members to better understand what happened and how we can best help you. I will be reaching out as soon as I've done so. I've also sent you a colleague request here. 

Thank you 

Jacque 

Medium dhm logo highres v4.3Jacque Fairbourn, DoHardMoney.com | 800‑284‑0076 | http://www.DoHardMoney.com/biggerpockets

Originally posted by @James Henrie :

DO NOT USE DoHardMoney.com Once you send them your hard earned cash, you can never get it back. They will tell you they can get your deal funded, but their criteria is almost impossible to find a deal with. I actually found DoHardMoney.com on biggerpockets so I Assumed they would be a great company to deal with, I definitely should have done my homework. I'm wondering what my legal recourse is for recovering the $3000.00 I sent them??? Best way to get back at dishonest companies is to leave reviews.

I had the same experience. We all should contact a lawyer, and pursue some kind of legal action against them. They deliberately sabotaged my evaluation process, when I had comps on the same block going for 169k, but because some homes sold for 135k  a mile away, in Chicago, which is HUGE, and weren't near the same caliber of rehab.  Total scammers. 

@Brent Tomczak   if you feel you have been bait and switched the appropriate place to lodge a complaint is the AG in Utah where they are based.  once a complaint is lodged ( in writing ) they will then contact the company and the company will have to defend their business practice.. if its legal nothing will happen if its a problem they will have to deal with it.

However based on BP feedback.. its apparent that while they fund some .. most do not get funding and end up blowing 3k .. because as you state the deals simply are never good enough.. IE  Sorry did not meet our criteria send in another one and another 650...

Also remember Utah is ground zero for back end Guru fulfillment centers so there is a reason you get hammered by these people its in their DNA.. :)

but some people have gotten on here and said yes they got funded.

If your an American Greed fan.. watch the episode on Remmington financial.. this reminds me of that company.

Medium ksqoekox 400x400Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222

@Jay Hinrichs  Utah is an awesome place to live even if we've got some bad eggs hanging around.  I 100% agree and can confirm this is ground zero for that stuff, for now, but that is changing.  Several hard money lenders and other guru-type firms have either bowed out, or have moved to states like Arizona due to lax telemarketing and seminar sales laws.  A couple years ago there was a change in the guard in the Utah AG's office which led to a significant crackdown and major change to how seminar and telemarketing companies operated, but there are still plenty out there.

I would have to do some digging to find it, but I recall reading a press release, it had to be 2013 or 2014, where the FTC issued a statement about these companies saying something like "You can sell whatever you want, to whoever you want, for whatever price or profit you want, as long as the person knows what they are getting and are willing to pay for it, and agree to the terms you outline". 

Basically, Caveat Emptor. 

@Blair Poelman   its nothing against the state... Its just true that the seminar business and fullfilment companies are ( many or most) are or were based there.. I mean I have been to a few of their offices walked the floors seen it in action.

Premier marketing.... Nudge  et al.. these are BIG for real concerns that make Multi Millions .. but not only in the real estate space they do all sorts of different business and seminar models.. the How to real estate just happens to be a very big one then they morph into also selling the product etc.  

Medium ksqoekox 400x400Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222

@Jay Hinrichs yep, no argument there, but I don't know of anybody here selling turnkeys right now.  Most are gun-shy after a couple guys wound up prison last year for screwing a lot of people on turnkeys.  In my experience, the biggest problems with turnkeys are; 1. the properties are cheap, so they require a lot of management and obviously the risk is higher, and when they go bad they go really bad. 2. Turnkey buyers seldom have a deep understanding of what they're doing and either don't, or won't do enough due diligence required to make the right choice - but they will throw down their money and buy it anyways.

To each their own, but as long as there are ballrooms, there will be seminar companies to fill them up and sell either this product or that service...

@Blair Poelman   you maybe referring to this company

https://www.sec.gov/litigation/litreleases/2016/lr23451.htm    Marquis

Clatfelter actually came to my office back on 2011 or 2012 pitching what they were doing in the mid west turnkey space.. I told him point blank they would end up broke.. well it was even worse they really went off the deep end.

Nudge or Buy PD was selling product in Detroit and in Lehigh acres as of 18 months ago when I went to one of their events in Vegas.. the flipping Vegas stars were their clients.. its a huge production. they were selling houses lots other investments.. LLC set ups asset protection insurance you name it they had it all right there.. and why not you have 400 people in an audience all captive in Vegas for a weekend.

Bottom line though your right Caveat Emptar.

there was another fellow from SL  that I funded early on in 2004 ish I know I flew my plane over to visit with him and I just bought it.. so I know it was that year maybe 05.. and he really laid the wood to the investors I did about 3 deals with him figured out what he was doing and fired him.. he ended up in hot water but I don't think Criminal like Duecher.

the other industry that is prevalent there is the door to door security business  LOL.. they love hiring the local kids there to knock doors they take them all over the country to work different markets kind of like storm chasers.

 

Medium ksqoekox 400x400Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222

@Jay Hinrichs ya, marquis really did a number on a lot of folks.  

I'm pretty sure I know who your 04-05 guy is - but I'd rather not name names on an open forum in case I'm thinking of the wrong guy.  If it is that guy, he's still neck deep in the mix.

The summer sales door knocker guys are a completely different ballgame.  Mostly populated with guys that fell in love with knocking doors while on mormon missions.  However, Blackstone seems to think there's something to it, they bought Vivint for 2 billion dollars back in 2012

@Blair Poelman   Ok well you have a great weekend.. its really a small industry and world...

I think what gets me going with DHM  is just their model is one of being rewarded with loan failures and basically targeting new investors who will have a super hard time finding anything that meets their underwriting criteria.

I mean its really simple logic 0n that front.. folks looking for 100% financing are one's with limited capital limited experience and they just are not going to find the smokin deals that DHM wants to fund.

and frankly I can't blame DHM I would want best coverage possible because of the high risk borrower.. but to charge for failure I don't cotton to that I think its morally and ethically beneath a for real lender.

Medium ksqoekox 400x400Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222

@LeeandVicki Martinez They offer (Or at least they used to, don't know if they still do) fake pre approval letters for a small monthly fee. This to me is a pretty big red flag to avoid a company like this. That said a couple years ago a buyer who was represented by another brokerage purchased a couple of my listings & got their funding from DoHardMoney.com. Deal went through without a hitch.

Medium holton wise property group logo jpegJames Wise, The Holton Wise Property Group | [email protected] | 216‑661‑6633 | http://www.HoltonWisePropertyGroup.com | Podcast Guest on Show #127

Originally posted by @Jay Hinrichs :

@Brent Tomczak  if you feel you have been bait and switched the appropriate place to lodge a complaint is the AG in Utah where they are based.  once a complaint is lodged ( in writing ) they will then contact the company and the company will have to defend their business practice.. if its legal nothing will happen if its a problem they will have to deal with it.

However based on BP feedback.. its apparent that while they fund some .. most do not get funding and end up blowing 3k .. because as you state the deals simply are never good enough.. IE  Sorry did not meet our criteria send in another one and another 650...

Also remember Utah is ground zero for back end Guru fulfillment centers so there is a reason you get hammered by these people its in their DNA.. :)

but some people have gotten on here and said yes they got funded.

If your an American Greed fan.. watch the episode on Remmington financial.. this reminds me of that company.

 

I was a bit harsh with my post, but I did file a complaint with the BBB, and was refunded my money. We just had a difference of opinion regarding the ARV of the property, and was not happy with the evaluation timeframe, because it almost cost me my earnest money. I do think they fund deals, but you're better off finding them yourself rather than buying wholesale to minimize cash to close. The partnership just wasn't for me, but we ended on good terms now.

Updated about 1 month ago

I was a bit harsh with my post, they're not a scam... They didn't intentionally kill my deal... they were trying to give me a loan. We just had a difference of opinion regarding the ARV of the property, and was not happy with the evaluation timeframe and that I had to come up with cash to close, because it almost cost me my earnest money. I do think they fund deals, but you're better off finding them yourself rather than buying wholesale to minimize cash to close. The partnership just wasn't for me, but we ended on good terms now.