Do Hard Money company, reviews?

65 Replies

Hello & thank you for the help! 

I am a newbie looking to do my first deal. I have very little capital with which to work & I am looking at hard money lenders- specifically the company Do Hard Money.

I found them through BP’s website, but I would love some BP feedback- who has used them? 

What was your experience? 

Any other thoughts or other recommendations? 

I would really be able to look some one in the eye & shake their hand to do a deal, but they seem great after my first conversation.

Thanks again! 

they charge 3k up front.. with no guarantee of funding so if you don't have any money or very little 

be careful.. mixed reviews on the company on BP.. also when you dig into it you will realize you will need a pretty good amount of capital to do a loan with them.. 

if you have no real capital to do this your making a huge mistake.. you need to first get capital.

if you have capital then you can take these high leverage loans..

also beginners have a hard time finding deals that will meet their criteria and thereby you lose your 3k.

Originally posted by @Liz Cole :
@Jay Hinrichs Jay can you share some examples of what the typical criteria might be?

you have to contact the company.

but based on what the company has posted and others.. the deals because of the inherent risk and I don't blame DHM at all.. they have to be full on slam dunks..

its rare a no money beginner stumbles into a slam dunk.. that's my point.

bottom line is if you have no capital to operate your not ready to do this.. this is a capital intense business and undercapitalized business go broke every day.

Ergo is my personal opinion that this model of charging those that just don't know what they don't know 3k up front with no vetting of them .. this companies makes a ton of dough just on the 3k.. and many never get funded .. that I am positive is a fact. 

@Jay Hinrichs I had a fellow local investor mention he found a hard money lender and mentioned the 3k upfront. I immediately asked if it was do hard money and they said yes. So I found that pretty funny.

I would not hand over non refundable money to these guys. Find a local hard money lender who actually lends. Ask for previous client reviews

@Jay Hinrichs

Thanks.. just was curious what criteria HM companies typically are looking for. I know you do/did make some loans so was looking for your expertise. I get that it depends on the specific company. And, thanks for the watchdog warning! I'm sure these type of companies prey people new to the business. 

Originally posted by @Liz Cole :

@Jay Hinrichs

Thanks.. just was curious what criteria HM companies typically are looking for. I know you do/did make some loans so was looking for your expertise. I get that it depends on the specific company. And, thanks for the watchdog warning! I'm sure these type of companies prey people new to the business. 

liz Pop on Lendinghomes website.. they have a really nice pricing matrix.. this will give you a feel for what one of the largest HML in the country charges.. and those rates you will see are pretty common vis a vi experenice.. lending home charges 200 I think for a submission but they are as stated the largest lender in the country so as long as you hit their matrix they WILL fund.. that's the biggest feedback or criticism we see on BP about DHM is that their criteria once you pay the 3k is so stiff that many never find a deal good enough.. and poof the 3k is gone.. along with having to front the rehab.. so its anything but no money down

Disclosure: Director of PR DoHardMoney.com 

@Joanna Schutte thank you for reaching out to us and asking for more information. I am going to take a moment here to clarify some of the misinformation shared by others in this thread who've not worked with DHM.

The $3000 is for enrollment and access to tools and resources to help you find the type of deal that we fund- and yes, it is difficult to find these deals. No one ever "loses" $3000, they are paying for the tools and resources and have access to them regardless of whether or not we fund any deals for them. No one needs to enroll in order to have us fund a deal for them. These tools and resources really do allow those who make good use of them learn how to recognize this type of deal, and we do have data that shows how this helps them find better deals that we would be happy to share with you. I'd share it here, but Bigger Pockets will often then remove my post as being promotional, but you are welcome to contact me for more information. We ARE much more cautious about the deals we will fund, and that is a GOOD thing because of the number of new investors we work with. 

Yes, we have a lot of reviews on our site, and on Google and elsewhere because we ask people who are happy with us to share that. Like every other business we have some people who are not happy with their experience and they don't seem to need to be encouraged to share :) We hate to turn down a deal, we work very hard to try to find a way to fund the deals brought to us. We make our money from funding the deals, so every one we turn down hurts. That $3000 pays for not only the evaluations of the property by local real estate professionals familiar with the market, it pays for the real estate professional in our office who goes through the numbers of the deal with the borrower to make sure that it is even worth ordering evaluations, it pays for the project manager who goes through the contractor bid line by line to make sure that the bid is actually what needs to be done and not some type of "buddy pricing" or artificially low so that it appears to qualify for financing. It pays for the project manager that keeps reminding the borrower to get the appropriate paperwork and correct it when necessary. It pays for the account managers who help the borrower run their business like a business and understand all of the concepts that are new to them. We work with so many new investors who have no idea what constitutes a good deal. So many of them get emotionally attached to the first estimated profit on a deal that they won't accept when more digging and research has shown the deal to be too risky or not as profitable. There is no "poof" and the $3000 is gone. If some one thinks that their $3000 is gone they've not understood what they purchased because that $3000 in no way guarantees funding for a specific deal or that we'll just take the borrower's (or often their agent who stands to profit) judgement on whether or not we should fund it. The resources are there after a deal has been turned down and hopefully what has transpired is that the new investor will have learned from submitting a deal that didn't qualify and refine their search.

Yes, we turn down deals, and that sometimes those deals do get funded by another source and some make money. Because, sadly, we are not perfect or clairvoyant. Saying that people "never find a deal good enough"  when in fact it is that people stopped looking because it became harder than they thought it would initially be is inaccurate.

We would like an opportunity to work with you, whether you choose to enroll or not. Please reach out if you have further questions.

@Liz Cole - the criteria that DHM has for funding is also available to anyone before they submit a deal, whether they pay $3000 or not- and we disclose all our fees up front. As long as you hit OUR matrix we will also fund you, our matrix just also cares whether or not you're profitable and includes the fees other lenders fail to disclose until closing. Sure getting outside input is helpful, but if the warning comes from someone who has no first hand experience and has never looked at all of the specifics of deals we turn down or the communications we've had with a potential borrower it really is not going to be an accurate assessment. 

As a project manager with DHM, I wanted to concur with the post above.  I use my considerable experience in the flipping industry to help newbies avoid pitfalls.  There is considerable benefit to the vetting of contractors' bids prior to funding a loan.  By avoiding the many pitfalls including the estimates of inexperienced or unscrupulous GC bids, we can help newbies hone in on safer, more profitable deals.  Once a loan is funded and issues arise as they almost always do, I work individually with the borrower and the GC to work through the problem and keep the focus on timely completion.  I work as a borrower's advocate at all times and I have said to many borrowers who brought us problem deals that "we will take the lessons learned and find a project that works".  I'm not sure how our roles can be viewed the way some on this thread have described.  We continue to work with each borrower and encourage and assist them each step of the way.  I wouldn't be doing this work as a PM if I did not believe I was helping less experienced borrowers realize their goals in this business.

Originally posted by @Jacque Fairbourn :

Disclosure: Director of PR DoHardMoney.com 

@Joanna Schutte thank you for reaching out to us and asking for more information. I am going to take a moment here to clarify some of the misinformation shared by others in this thread who've not worked with DHM.

The $3000 is for enrollment and access to tools and resources to help you find the type of deal that we fund- and yes, it is difficult to find these deals. No one ever "loses" $3000, they are paying for the tools and resources and have access to them regardless of whether or not we fund any deals for them. No one needs to enroll in order to have us fund a deal for them. These tools and resources really do allow those who make good use of them learn how to recognize this type of deal, and we do have data that shows how this helps them find better deals that we would be happy to share with you. I'd share it here, but Bigger Pockets will often then remove my post as being promotional, but you are welcome to contact me for more information. We ARE much more cautious about the deals we will fund, and that is a GOOD thing because of the number of new investors we work with. 

Yes, we have a lot of reviews on our site, and on Google and elsewhere because we ask people who are happy with us to share that. Like every other business we have some people who are not happy with their experience and they don't seem to need to be encouraged to share :) We hate to turn down a deal, we work very hard to try to find a way to fund the deals brought to us. We make our  money from funding the deals, so every one we turn down hurts. That $3000 pays for not only the evaluations of the property by local real estate professionals familiar with the market, it pays for the real estate professional in our office who  goes through the numbers of the deal with the borrower to make sure that it is even worth ordering evaluations, it pays for the project manager who goes through the contractor bid line by line to make sure that the bid is actually  what needs to be done and not some type of "buddy pricing" or artificially low so that it appears to qualify for financing. It pays for the project manager that keeps reminding the borrower to get the appropriate paperwork and correct it when necessary. It pays for the account managers who help the borrower run their business like a business and understand all of the concepts that are new to them. We work with so many new investors who have no idea what constitutes a good deal. So many of them get emotionally attached to the first estimated profit on a deal that they won't accept when more digging and research has shown the deal to be too risky or not as profitable. There is no "poof" and the $3000 is gone. If some one thinks that their $3000 is gone they've not understood what they purchased because that $3000 in no way guarantees funding for a specific deal or that we'll just take the borrower's (or often their agent who stands to profit) judgement on whether or not we should fund it. The resources are there after a deal has been turned down and hopefully what has transpired is that the new investor will have learned from submitting a  deal that didn't qualify and refine their search. 

Yes, we turn down deals, and that sometimes those deals do get funded by another source and some make money. Because, sadly, we are not perfect or clairvoyant. Saying that people "never find a deal good enough"  when in fact it is that people stopped looking because it became harder than they thought it would initially be is inaccurate.

We would like an opportunity to work with you, whether you choose to enroll or not. Please reach out if you have further questions.

@Liz Cole - the criteria that DHM has for funding is also available to anyone before they submit a deal, whether they pay $3000 or not- and we disclose all our fees up front. As long as you hit OUR matrix we will also fund you, our matrix just also cares whether or not you're profitable and includes the fees other lenders fail to disclose until closing. Sure getting outside input is helpful, but if the warning comes from someone who has no first hand experience and has never looked at all of the specifics of deals we turn down or the communications we've had with a potential borrower it really is not going to be an accurate assessment. 

to be fair and balance other lenders do all of what your talking about as cost of doing business they dont charge 3k for it.. but i get it .. 

you advertise for No money down that draws in rookie generally speaking and they just dont know what they dont know.

and to be fair to you guys.. most HML wont fund them based on zero experience.. but they also dont charge them 3k to say we wont fund you.. its clever what you guys have done.. thats for sure.

@Jacque Fairbourn . @Craig Silverman . @Jay Hinrichs ☀ I value Jays perspective as he's been in many phases of the business. I think, and this is my opinion only, he is an attentive watch dog to the REI community and wants to clean it up. I get that because I, too have a Justice streak. There are many overpriced and sometimes useless services ready and willing to take advantage of newbies. Thank you all for you input in the conversation. it has been very interesting. ☀☀ BTW, I thought we were talking GENERAL HM.. and that DHM was lingo! ☀☀ Old Blonde Lady Here... 😎

I have not tried a meet up yet, thank you for the tip! 

DHM thanks for adding your perspective as well- you are correct, it is always easy to find people who will say negative things. The more detailed description is very helpful. 

BP friends- again, thank you for taking time to post & share your perspective. 

Hi Joanna,

I have done 2 deals with them. I am looking for my 3rd one now. They offer you less to put down (last deal was around $5k and most of that was insurance) and have given me the opportunity to really make headway in this business. When all the other lenders waste your time Do Hard Money did not and was the ONLY lender true to their word. I look forward to doing more deals with them!

I have just become aware of this thread and would like to respond. I have been a subcontractor with DHM for over two years. I am a project manager with DHM and have worked with many borrowers since I began this position. Some of them have been experienced but most of them have little or no experience in the world of rehabbing properties. A lot has been said on this thread about the $3000 fee for enrollment and accessing our various tools. One of those tools I feel is much more valuable than the $3000 fee for enrollment. That tool would be our project management tool. I offer our clients the use of my vast experience in the construction industry. I have built, remodeled or rehabbed over 1300 properties. I use that experience when vetting the contractor's estimates that come to our office. I also help these new rehab clients develop schedules and game plans to do their rehab. In other words, we offer to hold their hand throughout the process. Most conventional banks or hard money lenders just close the loan and leave the process to chance. While it has been said that we take their money and then leave them on their own, I can attest that is not true. Some people on this thread have indicated that there is not any value in spending $3000. If that person were to truly understand our process they would not be able to say that there isn’t any value in that. Before becoming project manager with DHM I would always charge a fee based on the square footage of the rehabbed property to hold the client’s hands through the process. Effectively that fee was much costlier than the $3000 that people pay DHM. One of my actual borrowers has made a very positive reply on this thread and I want to thank her. Whether you choose DHM or some other hard money lender it is important to understand that there is a lot more value in what we do than what is mentioned by someone on this thread with little or no experience with our process. I have always been told that you need to be careful who you trust as your advisors. Is it someone with actual experience in the field using DHM or someone who has a loud voice and a vested interest in steering someone in other directions?

Originally posted by @Richard Weber :

I have just become aware of this thread and would like to respond. I have been a subcontractor with DHM for over two years. I am a project manager with DHM and have worked with many borrowers since I began this position. Some of them have been experienced but most of them have little or no experience in the world of rehabbing properties. A lot has been said on this thread about the $3000 fee for enrollment and accessing our various tools. One of those tools I feel is much more valuable than the $3000 fee for enrollment. That tool would be our project management tool. I offer our clients the use of my vast experience in the construction industry. I have built, remodeled or rehabbed over 1300 properties. I use that experience when vetting the contractor's estimates that come to our office. I also help these new rehab clients develop schedules and game plans to do their rehab. In other words, we offer to hold their hand throughout the process. Most conventional banks or hard money lenders just close the loan and leave the process to chance. While it has been said that we take their money and then leave them on their own, I can attest that is not true. Some people on this thread have indicated that there is not any value in spending $3000. If that person were to truly understand our process they would not be able to say that there isn’t any value in that. Before becoming project manager with DHM I would always charge a fee based on the square footage of the rehabbed property to hold the client’s hands through the process. Effectively that fee was much costlier than the $3000 that people pay DHM. One of my actual borrowers has made a very positive reply on this thread and I want to thank her. Whether you choose DHM or some other hard money lender it is important to understand that there is a lot more value in what we do than what is mentioned by someone on this thread with little or no experience with our process. I have always been told that you need to be careful who you trust as your advisors. Is it someone with actual experience in the field using DHM or someone who has a loud voice and a vested interest in steering someone in other directions?

I think this is all fine and good and commendable what the issue is taking the 3k and not being able to close a loan i can see this as additional charge ONCE THE LOAN is closed and makes total sense.. its taking hte money up front and not returning it if you never close that's the heart burn. And unless you are the underwriter ... and making the decision to fund ??? are you ?

Richard- thank you for adding to this conversation, I appreciate your perspective & good to know more about your role. 

Jay- you are bringing up great points & items for me to clarify before handing over money to anyone, thanks! 

Jacque- thank you for your polite responses & clarifications about your company. I do appreciate it!  

The local guys I’ve seen around here are typically around up to 65-70 percent LTV 2-3 points and 10-12 percent interest. I am unsure exactly but I also want to say they won’t lend above that LTV amount even for rehabs

Its funny that i just spoke to someone at do hard money and he said the $3000, $650.00 of that goes to the evaluation of the deal, sending someone out to look at it and the remainder is skin in the game which is refunded after the deal is successfully done.I don't understand how the representatives of DHM who responded above failed to mention that. I to am looking for a lender and all this is just crazy lol

@Errol St Marthe - I think there may be a  misunderstanding. From looking in your account I cannot see that you've spoken with anyone today (it may take the system a while to update though :) ) so I cannot necessarily have that same individual reach out for clarification. However, I've sent you a colleague request here on Bigger Pockets and would be happy to arrange for someone to call via after connecting in that manner 

Can you put 30-40% down with your money? Good credit score? 

Most will lend only 50% if you are not a past proven client. Also can you accept as second on the title? If you default they get the home before others.