Any luck or experience with DoHardMoney?

Question

Looking at hard money lenders still, and DoHardMoney (who I find through here) seems promising.

Anyone use them before? Thoughts?

Jay Hinrichs · Answer

there are a lot of threads on DHM

from what I have gleaned over the years is :

1. they charge a 3k fee up front for their training materials.

2. they say you get the 3k back when they fund your first deal

3. others have said on BP that there is a submission fee of 600 or so per deal

4. others have said their underwriting criteria for 100% financing was hard to get through and never got funded ( IE could not find a deal that was good enough).

5. Others have said you need the money to front the rehab and then you get reimbursed after the fact.

6. Others have said the rates for the 100% financing were high ( but I don't think that is bad they have to be high for the risk)

So I think if you read the threads on this company that's the gist of it.. a few folks will pop on and say they did well.

Bottom line it appears to get the no money down loans you will need 3k up front  600 per submission  probably another 1 to 2k for earnest money and then 500 plus for inspections .. then enough cash or credit to fund the rehabs until you get reimbursed.. And pay what is understandably some of the highest rates in the industry.  The other thing that others have said is that the structure is that of an LLC  where your a member with them and if you default they just take over the company ( which I don't know for a fact but I think that is a good move on their part i would do the same in the same position.)

Lastly others have said when they have the phone call its hard sell  to get the 3k in the door.  Once you have sent the 3k its gone and you now have bought training materials.. then you must get a loan that fits their parameters and get it funded .

Market is so tight right now that could be the challenge finding deals that have the equity coverage and will meet their valuations.

Brennan Thomas · Answer

@Jay Hinrichs

This was very helpful! Thank you!!