Anyone have loan experience with Do Hard Money
Clayton, NC · Member since 2016 · 29 posts · 3 votes
Anyone have loan experience with Do Hard Money
Most Popular Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes@Stephen Turner the gothca from what I have seen posted about DHM is that everyone is approved once they send in the 3k that's a no brainer.. easy money for the company.
its getting a loan that they will actually fund that becomes an issue.. plus from what I have seen written its another 800 submission fee.. so your into these guys 3800 to 5k before you even get a deal done... that's a lot of risk.. and from what others have posted many never did get a deal funded and ran out of money because they gave them all they had with the dream of a no money down deal.
its simple guru tactics brought over to the quasi loan business from what others have said and posted..
44 Replies
- 9yRobert LindsleyPro MemberReal Estate Investor · Orlando, FL · Member since 2016 · 185 posts · 53 votes
Hi @Stephanie P.,
Ideally I'm looking for $40k. The property is a 7-unit multifamily building with an additional commercial space. Fully rented (except the commercial space) and positive cash flow out of the gate.
Looking forward to hearing your thoughts.
Thanks!
Robert.
- 9yStephanie P.Pro MemberWashington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
We would be interested in that for the entire property, not just the 40K.
We would use our commercial product that goes up to 75% ltv. It's a no income verification, no seasoning of title product that many people use for cash out.
Rates on a 3/27 are in the high 7's. It's got a 30 year amortization. This is not a rehab product and it would have to be fully leased (including the commercial space). Copies of leases will be required.
Stephanie
- 9yRobert LindsleyPro MemberReal Estate Investor · Orlando, FL · Member since 2016 · 185 posts · 53 votes
Hi @Stephanie P. I'll PM you. Thanks!
@Jay Hinrichs I'm thinking the term would either be 12 or 24 months. An equity partner is a good idea -- I'm actually looking for a financial partner to work with on multiple deals and that could be a good answer.
- Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes9y
If you do what I do and look at their local Wake county lending history, make sure you know that some of their recorded DEED transactions are really deed-of-trust actions disguised in a TRUST DEED DocType. At first glance, you may see their large number of (DocType) DEED transactions and make the premature, and incorrect, assumption that a very large number of their loans end up as foreclosures. I have no clue why their closing attorney doesn't use, uniformly, a deed-of-trust security instrument. In Wake county the DHM organization has lent 14 times and sometimes they use a deed-of-trust (DocType D-T) and sometimes a TRUST DEED (DocType DEED.) BTW the above sentences may explain why some of the documents are not imaged property.
Of the 14 loans, I see that at least one resulted in foreclosure, two appear in limbo (not cancelled and property not sold after multiple years, with one court (judgement) action), three don't have CAN or any other recognized mortgage releases even though the flipper sold the property and the transaction appeared to otherwise be successful, and the rest looked like 'good' transactions with the flipper selling and (per tax stamps) made a profit.
Have you talked to a loan broker? Until you are denied outright, if I were you I'd try a HML as last resort. My 2 cents.
- 9yAdam SchneiderPro MemberLender · Raleigh, NC · Member since 2012 · 957 posts · 639 votes
@Robert Lindsley If you are looking for gap funding on a seller finance deal, you'll want to ask the seller to subordinate his/her position on the lien. Otherwise, the gap funder is not in first position and won't do the deal.
- 9yRobert LindsleyPro MemberReal Estate Investor · Orlando, FL · Member since 2016 · 185 posts · 53 votes
@Adam Schneider that's really insightful. Thank you! Yes, that's exactly what's happened with a couple of investors - they're simply not interested in taking second position on a property....understandably so.
- 9yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@Adam Schneider @Robert Lindsley gap funders ARE generally second position lenders... and are usually private folks.. not many companies or HML will do seconds.. unless borrower is a long time client.
- Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes9y
Do you think Gorilla Capital would be a good strategy for a new investor to get their feet wet? I was considering going with them and you mentioned you had some previous experience in terms of knowing the CEO.
- Hard Money Lender · West Jordan, UT · Member since 2015 · 105 posts · 75 votes9y
Disclosure - Director of PR for DoHardMoney
- Hard Money Lender · West Jordan, UT · Member since 2015 · 105 posts · 75 votes9y
Disclosure - Director of PR for DoHardMoney
@Jay Hinrichs - the $800 "additional" fee is not correct. There is not an additional fee for those enrolled in the program for their first deal. Anyone doing subsequent deals with us, or those not enrolled would need to pay for evaluations, but it is not $800.
I can outline what DHM does and address some of the common misunderstandings people have about us here. Because BP considers linking to testimonials or giving specifics on our borrowers' success as promotional if you want that information you can contact me and I will be happy to give that to you.
Probably the biggest misconception of DHM is that we charge an "upfront fee" this is not true. If you have a property under contract you can fill out a loan application on our site and we can review it with you to see whether or not both parties feel like it is a deal worth pursuing. If you determine after that phone call that you would like to go ahead we would then order property evaluations which would be the only cost you would incurr. Our evaluations are done by independent 3rd party real estate experts in the area. We DO NOT use comps provided by the borrower or their agents, we want independent eyes on the deal. If, after the property evaluations come back, the deal meets our criteria we would extend a loan offer, and at that time the regular types of loan costs come into play. It is important to understand that the deal needs to meet OUR criteria, not that of other lenders. Other lenders might be willing to extend funding on a property that we are not. We don't require a down payment and many times fund all or most of the rehab as well, so we're taking on much more of the risk. Therefore, our requirements are tighter. We look not only at profitability but at how quickly a property is likely sell, amoung other things, because we want the borrower to focus on the rehab and not make monthly interest payments.
As far as the misunderstood "upfront fee" - Those without a property under contract can choose to enroll in our 100% Financing System. This enrollment gives them access to the tools and resources to help them find a property that MEETS OUR CRITERIA. Those who use these tools are much more likely to find a profitable deal that does so than those who don't use them. We do have numbers to back that up. What joining that program does NOT do is guarantee that we will fund every deal that a member brings to us, which is what seems to cause some confusion. So many people give up after only looking at a few deals, some even only after one deal. Experienced investors know that they need to look at dozens if not a 100 or more properties in order to find the right kind. And so many of the people that give up are only using "easier" property finding strategies like looking on the MLS. The tools and resources included, amoung other things, in the enrollment teach more strategies (and yes, those strategies are taught elsewhere) New investors are also more likely to get emotionally invested in a deal because the initial reviews of it by themselves and their agents seem to promise a high profit, and they can't quite let go of the excitement that "promised" profit. So its disappointing when after further evaluation the deal is not as profitable as originally thought. But we won't lend on an unprofitable deal. We won't lend if the projected profit is too small. We won't lend if there are factors that would contribute to the property not selling within the loan time frame. So we do turn down some of the deals that people bring to us.
- Real Estate Investor · Toledo, OH · Member since 2017 · 1 post · 0 votes8y
RUN!!!! Do Hard Money is a joke.. I've tried to do two deals with them to only find they always want you to through more money into the deal or get the purchase price lowered! You may think you have a deal but they will find a way to squeeze more money out of you on the lowest appraisal! Two appraisals ARV $10,000 apart between the two and $20,000 less than my local brokers BPO mind you he owns that market. You will never get 100% funding unless you get the property for nothing it's a scam! I wasn't even looking for 100% financing they milked the deal until it was unprofitable. I guess I'm out of my $3000.00 investment! Thanks, Do Hard Money you created a raving fan!
- Lawrenceville, GA · Member since 2018 · 1 post · 0 votes8y
hello so DoHardMoney is good company to go with for investing in real estate..Just want to make sure someone else experience it before I decide.Still asking questions;know about 3000 one time fee to join and get some get back....
- Investor · New Orleans, LA · Member since 2015 · 66 posts · 65 votes8y
Hey Stephen,
DoHardMoney.com is legit. I have done 2 deals with them. The 2nd deal I only had to put down a total of $5k including my insurance payment. I plan on using them again and again. As long as the numbers work, they will finance it. They are the only company that gave me a chance in this business because it their down payment requirement was much lower than everyone else's PLUS they are the only company that kept to their word. All these other lenders talk the talk but don't walk the walk. If you need any other information or want to partner up with me on your deal first so you can see first hand how they operate, let me know. With this business always throwing negatives at you it was nice to have a company like DHM.com be there to help me get started. The skies are now the limit for me!
- Clayton, NC · Member since 2016 · 29 posts · 3 votes8y
Thanks Paula
I certainly appreciate the positive insight with regards to DHM.
I have looked into them myself but was a little apprehensive.
I’m here in the Raleigh dorm area of North Carolina and I would welcome the opportunity to partner with you to see firsthand how they operate.
I’m here in the Raleigh Durham area of North Carolina and I would welcome the opportunity to partner with you to see firsthand how they operate.
What’s the best way to contact you
- Member since 2018 · 13 posts · 1 vote8y
Look into private money, rates start at 6.99 interest only with low fees.
- Member since 2018 · 1 post · 0 votes8y
Hi, I tried to PM Wendell but only colleagues can do so. Can you give some suggestions here of HML who don't charge up front fees? We are new to working with hard money lenders and there are a lot of scams out there-already lost $1500 to EZ Bridge Lending. :(
- Encino, CA · Member since 2018 · 6 posts · 0 votes7y
John Helmick and Gorilla Capital will steal your money and cut you out of the deal. They will either charge you outrageous, undisclosed fees or simply cut you out of the deal completely.
Then, if you disagree, you can go to arbitration and pay even more. This happened to us...
And when we disputed with him, John Helmick, CEO of Gorilla Capital, retaliated. He took our personal and confidential information including drivers licenses, social security numbers, bank statements and other sensitive information we gave him to prove we were worthy to fund HIS deals and he purposely and maliciously violated the signed confidentiality agreement by putting it all on the dark internet. How do we know? Because a blogger bragged about it. One of us has now had our identity stolen and we have reported Helmick and Gorilla to the DOJ and FBI (along with the blogger who posted it).
When you work with Gorilla Capital, make no mistake. You are working with scammers. You do not own the property. They own 100% of it in their LLC. Yet YOU loan THEM money for the down payment at no interest and with no collateral or any guarantee of repayment.
AND they charge YOU 14.99% (different rates for different products) for the money they lend themselves. AND if your chosen program says you will pay for rehab, YOU now begin paying to rehab THEIR property as well with NO guarantee you will ever get repaid.
We paid over $35,000 in HARD COSTS like materials and labor and are now fighting to get paid. We had to file a mechanic's lien in a state where a lawsuit is required to foreclose so now we are spending even more money.
In their agreement you can only act pursuant to a certificate of authority which says you can rehab the property. But they can revoke that at any time for any reason and without notice. Then you're out with no legal authority and they don't have to pay you back for the money YOU spent rehabbing THEIR property. They can even sell it at a reduced price just enough to cover what they are owed. And this is what they do...
When the property sells, they get paid first including their investment, profits, fees and more. My experience is that they make up exorbitant fees to pad their profit. If you're not happy, go arbitrate.
Once they've taken all of their investment, profit, fees and more then you start to get repaid for your hard investment into their property. And if there's not enough money to pay you back your investment let alone your profits because they've added so many fees... too bad so sad.
And if you don't like it, you can go to arbitration in Oregon and spend even more money to do that.
Do yourself a favor and RUN FOR THE HILLS!!!!!
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