Do hard money

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Do hard money

John Cartwright
Maurice, LA · Member since 2014 · 9 posts · 2 votes

ok I am at a point where I have done my research and still learning but I'm ready to get my first deal going and get it under my belt. My credit is not good enough to get a mortgage loan. So I'm left with private or hard money. Can anyone tell me more about do hard money.com. Are they really a good deal or not. I really hope I don't have to wait till I get back from overseas to have 100% of my own funding. Any advise would be greatly appricated

C

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
12y

@John Cartwright

@David Beckman

Any lender that charges money up front ( other than modest credit pull say 50 bucks) and for an appraisal. is not one you want to waste time with in my mind. There are many lenders or company's that just make money telling you you are pre approved but we need 2k for DD or some horse stuff like that especially bigger commercial deals. Although lending is strictly regionalized what one hard money lender does in your neck of the woods and what one does in mine can be far different. The day of just lending on the asset is really gone with most of the company's that have been in bizz for any length of time. they will underwrite a file but will want to see decent credit, tax returns and experience etc etc.. We do a true NON recourse loan but its at 50% of cost, and the home has to have already been rehabbed and in great shape, No straight LTV loans for me to much hanky panky in that arena.

Also go to the Scottsman Guide there will be a whole list of reputable lenders there I would start with that one.

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  • Corey Davis
    Los Angeles, CA · Member since 2013 · 169 posts · 27 votes
    12y

    @Brian Bower Brian, hard money is a very short term loan based on the value of a property you are using as collateral.

    Are you joining our little Portland investors get together soon?

    0Reply
  • Corey Davis
    Los Angeles, CA · Member since 2013 · 169 posts · 27 votes
    12y

    @Vance Petersen Would it be better to say that lending based the strength of a deal only is far less common than it was six years ago?

    0Reply
  • Vance Petersen
    Lender · Las Vegas, NV · Member since 2013 · 15 posts · 16 votes
    12y

    @Brian Bower Yes, hard money suits the fix & flipper better than the buy & hold investor. It is usually just a means to an end, where a fix & flipper will use it for the short term to acquire the property quickly when urgency is required, funding in as little as 7-10 days isn't unusual for most hard money lenders. Another use is as a "Bridge loan" which share hard money terms, the Bridge loan will carry the borrower into a purchase of a new property while they are still in the process of selling an old one. Once the old property is sold, the borrower can refinance the new one into a traditional mortgage. Also it blends well with construction, one example being if the borrower owns a piece of land or lot free and clear, the lender can tie up the lot and fund the construction of the house in draws, 6-12 months later once construction is finished the borrower can refinance into "soft money" through a conventional lender. Hope those examples help.

    @Corey Davis That's fair to say, back then a lot of hard money lenders were deviating and increasing their risk tolerance just to compete with the subprime market programs. The attitude that appreciation was inevitable brought even the hard money lender's LTV's to HELOC ratios. Back then it was, no fico..no job..no problem, as long as you have a Pulse & prop under contract we can give you a loan haha. It is more grounded now.

    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    12y

    Do hard money has a service where anyone can pay them a monthly fee and they let you type up your own proof of funds letter.

    Does that sound legit to you guys?

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @Vance Petersen do you need to be NMLS licensed to do loans on 1 to 4 unit loans in NV? or if the loan is to an LLC on a 1 to 4 and for commerical purposes are you exempt from being NMLS licensed? thank you in advance for your reply

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @James Wise NO way James... that is not a legit use of a proof of funds letter.. I will give them to clients and sometimes as a courtesy..

    Talk about another scheme.. have a front company charge people monthly fee and let them create their own POF that is really out there from my perspective.

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  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    12y
    Originally posted by @James Wise:
    Do hard money has a service where anyone can pay them a monthly fee and they let you type up your own proof of funds letter.

    Does that sound legit to you guys?

    Tongue & cheek

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @James Wise Ok got me!!! But now you will see this as a new offering on the net..... we need to be careful what we let loose on this site fertal minds could run with this idea :)

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  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    12y

    @Jay Hinrichs

    very true.

    0Reply
  • Jeff S.
    Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
    12y

    Generalizing about the terms or lending criteria that all private or hard money lenders use is both naive and overly broad. All have their own criteria and to say that the days of particular types of loans are over, is narrow sighted. In the case of private/hard money loans in Los Angeles, many of the statements above are wrong. The only absolute is that there are no absolutes in this business.

    What is clear is that many asset-based lenders have convinced some borrowers to accept their conventional lending criteria. Credit reports, FICO scores, super-low LTV loans, up front fees, overpriced appraisals, even profit sharing? Not only have you got to be kidding, you haven't been beating the right bushes if you accept this as your view of private lending.

    I know some won't believe it but there are many lenders out there who understand that the safety in a true private loan comes from the integrity of the borrower and of the value of asset. These are also the lenders that value long term, stable relationships from busy, professional borrowers.

    While I fully agree that you shouldn't overspend, there are many intangible advantages good lenders offer that are at least as valuable. Have you ever had to close a flip in one or two days or, conversely, had a lender flake out at the last minute? How much are these worth when you shop your loan?

    If your view of private lending is formed by what you see online, through sites like dohardmoney.com, I can't say I'm surprised. Even if they are legit, which seems doubtful, they are likely nationwide and a far cry from a local lender who has to compete in your specific market.

    There is a lot of money out there and the lending market is extremely competitive. If you're in this for the long haul, and need consistent money, you'd be wise to look locally and form the long-term relationships with those that know you well as well as your market.

    Jeff

    3Reply
  • Jeff S.
    Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
    12y
    Originally posted by @Jeff S.:
    Generalizing about the terms or lending criteria that all private or hard money lenders use is both naive and overly broad. All have their own criteria and to say that the days of particular types of loans are over, is narrow sighted. In the case of private/hard money loans in Los Angeles, many of the statements above are wrong. The only absolute is that there are no absolutes in this business.

    What is clear is that many asset-based lenders have convinced some borrowers to accept their conventional lending criteria. Credit reports, FICO scores, super-low LTV loans, up front fees, overpriced appraisals, even profit sharing? Not only have you got to be kidding, you haven't been beating the right bushes if you accept this as your view of private lending.

    I know some won't believe it but there are many lenders out there who understand that the safety in a true private loan comes from the integrity of the borrower and of the value of asset. These are also the lenders that value long term, stable relationships from busy, professional borrowers.

    While I fully agree that you shouldn't overspend, there are many intangible advantages good lenders offer that are at least as valuable. Have you ever had to close a flip in one or two days or, conversely, had a lender flake out at the last minute and another quickly step in? How much are these worth when you shop your loan?

    If your view of private lending is formed by what you see online, through sites like dohardmoney.com, I can't say I'm surprised. Even if they are legit, which seems doubtful, they are likely nationwide and a far cry from a local lender who has to compete in your specific market.

    There is a lot of money out there and the lending market is extremely competitive. If you're in this for the long haul, and need consistent money, you'd be wise to look locally and form the long-term relationships with those that know you well as well as your market.

    Jeff

    0Reply
  • Terri Lewis
    Flipper/Rehabber · Elkhart, IN · Member since 2014 · 197 posts · 41 votes
    12y

    I have been skeptical of the loan programs out there. Still signed up with one that was recommended by a strong and long time generational investor. Now after 4 months of not getting a "go" on submitting a loan request I am trying to figure out if there's going to be any way to get out from their program. I was so excited to think they were going to help us with the funds to do our flips. I had been approached by DHM and wondered how they would let me write up a proof of funds without them looking at the criteria. I wasn't very comfortable with giving a letter that was potentially fake to a realtor that we want to build a relationship with. In stead it seems I have learned some better ways on BP through reading the blogs and talking to knowledgeable investors. I have been running adds for VIP buyers and investors, but only have had a few replies. I am definitely not giving up on taking our company to the next level. Thank You for the input on the different funding methods and the ones to stay away form.

    2Reply
  • Brian Bower
    Portland, OR · Member since 2013 · 15 posts · 2 votes
    12y

    @Vance Petersen thanks for the breakdown, a couple of those scenarios I didn't think of.

    @Corey Davis I am hoping the meet up isn't after 5 pm and there is a good chance I'll be in attendance.

    0Reply
  • Vance Petersen
    Lender · Las Vegas, NV · Member since 2013 · 15 posts · 16 votes
    12y

    @Jay Hinrichs It appears there might be a limited exemption for your second scenario if loaning on behalf of yourself or marriage, NRS 645 Section 72: "provides that a natural person, or husband and wife, lending money for investment in commercial loans are not subject to licensure under NRS 645E and the federal SAFE Act."

    In either case I would call the NV MLD for further clarification, In most cases in this state an NMLS license is required to remain compliant whether the loan be for residential or commercial. Here are the descriptions for state licensing requirements & exemptions: http://mortgage.nationwidelicensingsystem.org/slr/Pages/DynamicLicenses.aspx?StateID=NV

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @Vance Petersen

    thanks Vance just like Oregon if its one to four units you need the license.

    As you know many states do not require it if its non owner occ investment purposes loan.

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  • Brian Jobson
    Miramar, FL · Member since 2014 · 33 posts · 5 votes
    12y

    As I continue to build my spread sheet with hard money lenders I think I have to reconsider Do Hard Money. I figured there loan program seemed to good to be true.

    Can anyone please refer some reputable HML's that loan to investors in Florida (more specifically South Florida).

    0Reply
  • Michael Lemieux
    Investor · Deerfield Beach Florida and Tupper Lake, N.Y. · Member since 2013 · 307 posts · 118 votes
    12y

    @Brian Jobson, Corey Johnson @ Waterstone Mortgage, in Jupiter, may be able to help you out. He has connections, if he can't do something through the bank. He helped me w/ my last 2 loans.

    0Reply
  • Brian Jobson
    Miramar, FL · Member since 2014 · 33 posts · 5 votes
    12y

    @Michael Lemieux Can I find his contact info on their website?

    0Reply
  • Raymond B.
    FL · Member since 2009 · 2k+ posts · 357 votes
    12y

    @Brian Jobson,

    David Dweck is a Hard Money Lender. He is located in Deerfield Beach, Fl.

    Here is a link to his site.

    I am NOT associated with, or receive any compensation for the above recommendation.

    Raymond

    1Reply
  • Priscilla Z.
    Rental Property Investor · Palm Bay, FL · Member since 2009 · 511 posts · 290 votes
    12y

    @Brian Jobson - I have one I work closely with....message me and I will give you his information.

    0Reply
  • Tasha Mckoy
    Real Estate Agent · Temple Hills, MD · Member since 2014 · 62 posts · 9 votes
    12y

    Thank you guys for the great information. I did pay the $1500 with DHM and was about to sign the agreement. Until I looked at this thread. I will not be signing any document with them and have submitted my refund request, as they instructed. Let's see how this goes. I'll let you know when I get my money back. Luckily, I did it on a credit card and will be able to dispute the charge if these aveanue doesn't work. Thanks again you guys for all the great information.

    BTW - Do anyone have an recommendation for HMLs in the state of Maryland?

    0Reply
  • Jeff V.
    Investor · Deridder, LA · Member since 2014 · 298 posts · 185 votes
    11y

    Wow I know this post is old but I'm curious to know why "BiggerPockets" even bothers to list them on the Resources Tab for Hard Money Lenders?  It sounds like this company is a snake in the grass with hidden fees.

    Also, I saw alot of mention about having found better funding options with lower fees ect,..  Does anyone care to share on other better sources for hard money ?

    Looking to do a full rehab on a property soon and will need some funding for the project.  Any referrals for Hard Money Lenders that are reputable in or serving Louisiana would be appreciated.

    Thanks,

    Jeff

    0Reply
  • Shedrick Nettles
    Wholesaler · Kenner, LA · Member since 2014 · 13 posts · 10 votes
    11y

    In regards to dohardmoney.com

    I have found their service to not be satisfactory. It is well organized but it doesn't work like they say. I have submitted several deals at 650 dollars per inspection BPO and I have yet to close a deal and for really petty reasons. They even said oh it's not a problem with us but with you...we have several other investors in your market who are closing deals with us and they have yet to provide references. Keep your money find a real lender it's an awesome waste of time and effort. Especially when you factor in EMD and other costs out of pocket. 2000.00 for access to the software and 5 - 650.00 inspections later and still no deals done because of crime or crime and crime or crime and crime...either way its crime. 75K spread in one deal - crime 650.00

    42k spread in another deal - crime 650.00  

    83K spread in another - crime 650.00

    17500.00 spread in another - crime 650.00

    Plus the software 2000.00

    I pulled out after the last one so I can't offer any other information. I haven't asked for a refund because there will be none.

    1Reply
  • Edward Harvey
    Investor · Pine Mountain, GA · Member since 2013 · 2 posts · 6 votes
    10y

    Do Hard Money is in excellent source for your funding needs. Please be sure to ask for Janista Soto she's a great rep!

    3Reply
  • Stephen Nicholson
    Investor · Lafayette, LA · Member since 2015 · 152 posts · 50 votes
    10y
    Originally posted by @Edward Harvey:

    Do Hard Money is in excellent source for your funding needs. Please be sure to ask for Janista Soto she's a great rep!

     First post in 2 years and it's to promote a bad company in an ancient thread, that's not suspicious! Lol

    I spoke with DHM and got a bad vibe straight away. They seemed to want me to pay for all kinds of things such as software and development fees. Seemed like a scam so I never went any further, they still email me almost daily though. It's a shame BP doesn't do a better job of vetting who it lists in its resources section, I'm sure plenty of people have been stung after finding them on this site

    0Reply
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