Need some advice on HML's

3 Replies

My husband and I saw a few HML's on the BP site and wondered if anyone has any experience with these guys? If we don't have a "track record" or RE portfolio is it going to be difficult to get short term financing? Will the HML's want lower than a 70% LTV with no track record and still charge a bloody fortune? Any feedback is greatly appreciated!

EquityTrac, KickStart Funding, MoneyFound, LLC.

My husband and I saw a few HML's on the BP site and wondered if anyone has any experience with these guys?
- I do not, but here is a list of other real estate hard money lenders too -

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If we don't have a "track record" or RE portfolio is it going to be difficult to get short term financing? 

- That depends on the lender. If you have zero or little experience with remodeling real estate...estimating repair costs, dealing with contractors, knowing what needs to be done first, second, third, etc during a remodel...I can imagine it will be harder, though not impossible, for you to get a hard money loan. The more experience, better credit / income / assets you have ... the easier it is to get a loan, whether you are dealing with a hard money lender or bank. However hard money lenders tend to always be the 'easiest' of the guys to get money from.

Will the HML's want lower than a 70% LTV with no track record and still charge a bloody fortune? Any feedback is greatly appreciated!
- They all tend to charge high rates. 3 points up front + 12-15% per year is not unheard of

Thanks Steve! I would assume to that the better the deal is structured, documented and the more it makes sense the easier it will be to obtain short term financing. I hear conflicting information that HML's don't care about your credit, assets, etc. they care about the deal...and then some say they do look at credit, etc. Since I have so many years in the real estate and mortgage lending side and my husband has many years in the construction trades, that even though we haven't flipped a property, if we structure the deal correctly and our resume supports our experience, we would have a better chance of obtaining funding? I know rates are higher...and points upfront, but that's why it's called Hard Money, right? Can you point us to any HML's or private investors that I could talk with?

@Katie Grady  

HML prior to the GFC 08 was typically asset based.. with many only caring about the asset.. after we all got our butts handed to us from 07 to 2011.. most HML of any size ( unless they are relativily new) will require 2 years tax credit ext.. but they will have their own underwriting criteria.. And some are advertising 100% loans up to a certain LTV.

others are at % of costs.. etc etc.

Rates and terms are really location driven.. like right now in CA.. there is so much money that HM rates are down at 1 point and 9% from many 2 and 10 etc.. But in the smaller mid west markets rates are still at 20% apr or better.. so it just depends.

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