Need Hard Money Loan Fort Worth Explained

[Sheri H.]

Hello All,

My wife and I are looking to begin our first flip experience. Please let us tell you guys our situation and then any advice on how to proceed is greatly welcomed.

Our situation is as follows:

Looking to buy Single fam,  2bth 2 bed in the Mansfield TX Arlington area. We work self employed with sporadic income so conventional banks are a no no. A hard money lender is our most viable option. 

• We have 10 - 13K in savings to put towards the project. 
• Credit score of around 685 - 700
• Reno ourselves, somewhat experienced

we really want to buy something in good condition so that only cosmetic changes are needed, for which we'll do ourselves e.g; painting, carpet, floors, tiling, kitchen, yard. No electrical or major foundation/roofing exp or know how. 

Hope to be in and out in 5-6 weeks max.

So here's a scenario of what we kind of hope to expect:  

HML may offer us 70%ARV, 12%, 4pts

So with the above terms in play we have a question: 

If a property that has a $100,000 ARV and the HML offers us a loan of 70% of ARV =($70k) 

..If we buy the 100K ARV property for less than the 70%, say around $60K, can we put the extra $10k that was available from the HML towards the reno? Thereby using our reserve of personal money for the unexpected, on closing and added cash for the holding costs/reno if necessary.

Basically, do HML's give a set amount of funds of entire ARV estimates regardless. Meaning we can use a portion of their money to renovate because we get the property for less than 70%

Thanks.