My Experience with DoHardMoney

17 Replies

We completed our 1st deal with DoHardMoney. Our representative Lisa McCook was instrumental in getting our deal completed. We now have a rehabbed property currently on the market at 9301 S Troy in Evergreen Park IL. I will say in the begging it was a little confusing because I am a former banker and these loans are not your traditional loans or process. Once you understand the process and have a good representative to basically hold your hand it will be smooth sailing. We will definitely use DoHardMoney again.

Hi all...no reason to be deceitful if you pull up the property as someone just did you will see that Dohardmoney is holding the mortgage and it is currently listed. Again ...if you don't thoroughly 7nderstand their process or don't have a good representative then it can be frustrating. We did start off with a rep who was questionable but when I stayed on top of it I got the representative we hoped for. I think just like in any company some people just take a job and are there but others take pride in it. My advise would be just to be fully aware of their process before you sign anything.  

Aisha 

Originally posted by @Aisha Scott :

Hi all...no reason to be deceitful if you pull up the property as someone just did you will see that Dohardmoney is holding the mortgage and it is currently listed. Again ...if you don't thoroughly 7nderstand their process or don't have a good representative then it can be frustrating. We did start off with a rep who was questionable but when I stayed on top of it I got the representative we hoped for. I think just like in any company some people just take a job and are there but others take pride in it. My advise would be just to be fully aware of their process before you sign anything.  

Aisha 

In two posts, you've now made three references to the challenges of understanding their process.  What's so different or special about their loans?

Hello Kristen, this was my 2nd Hard Money Lender that I used. So I'm still new to the game. I used a Hard Money lender because I didn't have the capital and my debt to income ratio was off....so being a former banker and doing mortgages the traditional way for me was going to be very challenging so I opted to go with hard money lenders on my first few deals. When I build my capital up and increase my pool of private money I will just have more choices available to me when funding a deal. I am by no means an expert. I am just a seeker of information and enjoy the education I receive from groups like this. I saw so many bad posts about them while doing research I just wanted to share my experience. I said it was a little challenging in the beginning because I didn't understand some of their requirements. Honestly I had another deal that I was closing up on so I will also take responsibility on not being focused. I did also start off with a rep that didn't hold my hand as a new investor so that also added to my confusion.... but that was quickly resolved and then I had someone with me through every step of the way. So I appreciate them because I personally would not have been able to close the deal without them or my 1st Hard Money Lender. If you all know of other avenues of creative financing Please let me know.  I do not work for them or receive any discounts so I'm always looking for better deals!!! It's business not personal.

Aisha

I would be more than happy to provide but off the top of my head I don't have all the details...when I get back home I'll pull my file.
Originally posted by @Michael Seeker :

@Aisha Scott - can you provide more detail about the loan?  I'd be most interested in the following:

Interest Rate:
Points:
Term:
LTV:
Any other hard requirements:

Hard Money lenders are pricey...are they for everyone. ..? NO.....I chose them and it worked out for me. Will I use them again...? Probably if the deal makes sense. If the spread is too limited then it wouldn't make sense that why I try to buy low...Again I can only share my experience. To each is own. Of course you would do your research upfront before you do business with anyone.  You people are so critcal...but it figures I thought this forum would be different...I typically don't try to bash someone who is sharing there personal experience.  Let's keep it professional. @Account Closed  

Originally posted by Account Closed:

she forgets to put that they charge a HUGE $1800 upfront fee that is non refundable if you dont close.. and they take like a month to close. 

To my those are the parts of the process I wouldn't understand. 

As a lender that charges ZERO upfront and closes in 5-7 days.. anything different from that would confuse me!

Originally posted by @Aisha Scott :

Hello Kristen, this was my 2nd Hard Money Lender that I used. So I'm still new to the game. I used a Hard Money lender because I didn't have the capital and my debt to income ratio was off....so being a former banker and doing mortgages the traditional way for me was going to be very challenging so I opted to go with hard money lenders on my first few deals. When I build my capital up and increase my pool of private money I will just have more choices available to me when funding a deal. I am by no means an expert. I am just a seeker of information and enjoy the education I receive from groups like this. I saw so many bad posts about them while doing research I just wanted to share my experience. I said it was a little challenging in the beginning because I didn't understand some of their requirements. Honestly I had another deal that I was closing up on so I will also take responsibility on not being focused. I did also start off with a rep that didn't hold my hand as a new investor so that also added to my confusion.... but that was quickly resolved and then I had someone with me through every step of the way. So I appreciate them because I personally would not have been able to close the deal without them or my 1st Hard Money Lender. If you all know of other avenues of creative financing Please let me know.  I do not work for them or receive any discounts so I'm always looking for better deals!!! It's business not personal.

Aisha

Could you please answer the question?!  What were the challenges or things you didn't understand in their loan process?  

Originally posted by @Aisha Scott :

Hello Kristen, this was my 2nd Hard Money Lender that I used. So I'm still new to the game. I used a Hard Money lender because I didn't have the capital and my debt to income ratio was off....so being a former banker and doing mortgages the traditional way for me was going to be very challenging so I opted to go with hard money lenders on my first few deals. When I build my capital up and increase my pool of private money I will just have more choices available to me when funding a deal. I am by no means an expert. I am just a seeker of information and enjoy the education I receive from groups like this. I saw so many bad posts about them while doing research I just wanted to share my experience. I said it was a little challenging in the beginning because I didn't understand some of their requirements. Honestly I had another deal that I was closing up on so I will also take responsibility on not being focused. I did also start off with a rep that didn't hold my hand as a new investor so that also added to my confusion.... but that was quickly resolved and then I had someone with me through every step of the way. So I appreciate them because I personally would not have been able to close the deal without them or my 1st Hard Money Lender. If you all know of other avenues of creative financing Please let me know.  I do not work for them or receive any discounts so I'm always looking for better deals!!! It's business not personal.

Aisha

There are tons of hard money and private money options.  Especially for properties purchased right.  Pure equity lending is done in all markets I know of.  Was this lender the best you could do? Who else did you talk to?  I've paid lots of points and fees in the last 15 years, and as much as 18% interest short term.  I'm no stranger to hard money.  But an $1800 upfront refundable fee is not the norm.

Discloure - Director of PR for DoHardMoney

At DoHardMoney we do things a little different than most Hard Money Lenders and as a result we’ve disrupted things in a way that competitors feel the need to raise doubts and concerns about our systematic approach and our business model. In addition, we occasionally get individuals that “know someone” that’s done business with us and because of the unique approach new investors can get confused on the process we follow.

So here’s a breakdown of questions and concerns that frequently come up.

  • 1.First and foremost, if you are a customer and you’ve had an experience that’s caused you any frustration we’d invite you to contact us directly and give us an opportunity to resolve your concerns.
  • 2.Most Hard Money Lenders require 10-20% Down, decent credit and some experience. We have no down payment requirements. If you have 10-20% down we might not be the best option for you, but for the individual that's looking at a high ROI by not having to bring a lot of money to the table we might be your best option. Also, we work with investors that have bad credit and we don't require past experience.
  • 3.Our Interest Rate is 15-18% as an Annualized Rate. Our standard loan is a 5-month term which puts the effective rate at 6.25% - 7.5%. So a loan of $100K would have an interest rate of $6,250 to $7,500. Compared to a loan with a 12% interest rate you’re looking at a difference of $1,250 - $2500.
  • 4.Each property does go through an evaluation process where we send out 2-3 local independent evaluators to the property to determine the After Repair Value of the property. They are local licensed real estate agents that are active in the local community. They pull 3 active and 3 sold comps in addition to completing an interior evaluation of the property with an initial breakdown of needed repairs to get the property in resalable condition. The evaluation process does require $650.
  • 5.In part, with the evaluation process, you are paying for a quick turn time. Our Evaluators will be out to the property within 24-48 hours of us reviewing your loan application with you. If the initial numbers look good there’s no time to waste and we understand the need to get the results of the evaluation back to you ask quickly as possible.
  • 6.The draw back to an appraisal, you’re hanging your hat on one individual’s opinion, the turn time is 5-10 business days, appraisers’ expertise is in establishing the As-Is Value not the After Repair Value.
  • 7.We do require a $2500 deposit to get access to 100% Financing. We will finance up to 70% of the ARV with no required down payment. If you're purchase, rehab and closing costs are 70% or less you will bring nothing to the table. In addition to this, the deposit gives you access to the following:
  • a.Advanced Deal Analysis Software – enter the purchase price, rehab costs and After Repair Value and we’ll give you a comprehensive break down including costs, net profit, and potential cash to close.
  • b.Access to Proof of Funds – 24/7
  • c.Contracts and Checklists
  • d.Additional Tools & Resources to help you avoid common pit falls in evaluating, rehabbing, negotiating and reselling the property.
  • e.Your first evaluation is covered with the deposit.
  • f.If the needed funding is more than 70% but it’s still a profitable deal, we’ll work with you to potentially wholesale the property and still make money on the deal.
  • g.The remaining $1850 is rebated back to you once you resale your first property.
  • 8.Just like every other Hard Money Lender, one of the biggest challenges is helping new investors get dialed in on establishing accurate After Repair Values. Most complaints on bigger pockets are customers that are frustrated with the After Repair Value that’s established by our local evaluators. It can be disheartening when the values don’t come back as high as hoped. This frequently is a case of overly optimistic investors looking at a deal from a best case scenario. When there are disagreements with the potential borrower we do provide a dispute process allowing the customer to have us take a second look at the evaluations.

We’re not pretending to be something we’re not. For a lot of new investors with limited options we are often times the only viable option they have. We’re more than happy to give you a comparable breakdown of how our costs and cash to close compare to other Hard Money Lenders

@Debra Grumbach if the borrower gets us everything we need in a timely fashion it can be as little as 7-10 business days. However, because we work with so many new investors who are unfamiliar with all that is required we find that we often wait a bit longer for insurance to be in place or other documentation to be submitted.