New to Real Estate · Fort Worth, TX · Member since 2019 · 16 posts · 4 votes
My fiancée and I have been trying to roll our first home purchase and real estate purchase into one by house hacking since 2018. We have been unsuccessful using conventional mortgages and found ourselves in an increasingly competitive market that priced us out and forced us to take a rather long break for the past couple years. Now that the tides seem to be turning in the housing market, I have recently learned that there are companies like Flyhomes, HomeLight, and Zigzy that allow you as the buyer to purchase a home all-cash and pay as a mortgage + fee(s) to that lending company. I'm skeptical and question how this differs from hard money lenders. I'm also seeking enlightenment on whether or not this would be a good option to stay competitive and if any of you have had experience using companies like the ones named above.
Here is the article I read when I was researching the topic.
Look into fix and flip loans. You’ll get 80 - 90% of purchase and 100% of the rehab budget.
Hard Money has a shady stigma but that’s not true. Are there bad hard money lenders? Yea. Scammers? Yea. But I know many investors that have leveraged hard money to build themselves a nice portfolio.
Since you’ll lack experience, the best thing you can do for a lender is come to the table with Cash and Good Credit. That’s the other two criteria besides experience that lenders want to see.
Call some lenders and feel some people out. Look at their application and see what it asks for. Finding a good lender is lots of web searches and phone calls. That’s why some people use brokers because they don’t wanna be bothered finding the right lender.
These companies are de facto bringing hard money principles "to the masses" with a twist here and there for those who do not qualify conventionally or otherwise operate in a market where all cash/fast close presents the only opportunity to buy. Compare the rates and terms with those of local hard money lenders and choose the best. Who knows, though, the way the market appears to be heading in six months conventional financing may do the trick for you. Good luck.