DoHardMoney.com user review?

41 Replies

Has anyone here used DoHardMoney.com as a hard money lender? They're listed in the directory here on BP but I wanted to see if anyone who has used them could share their experiences with them. 

Thanks!

Following this thread. I'm looking into working with them for my first fix and flip. Some really negative reviews out there about their business model, but it also seems like those who had bad experiences either didn't produce good enough deals to meet their underwriting guidelines (true for any lender), or didn't really understand the terms of the program.

I'll let you know if I find anything out or if I end up working with them. Everything you said is essentially the same information I came up with when I was looking at them. As fate would have it, a friend of a friend of a friend got me in contact with a guy who flips houses full time in my area who's willing to work with me but it'd be using his hard money lender that he already has a track record with.

@Mike Lauer   I suspect very few deals meet their criteria why make loans when you get 3k non refundable up front  LOL  better business model to just ONLY take the very best.

and those that go to this company are usually beginners with little to no capital .. if they were not they would never use them.. and those folks have a hard time finding a GREAT smoking deal which is probably the ONLY thing this company will lend on .. most folks in the HML space do not like this model.. its simply too obvious what the model is and how many people who really have limited funds end up blowing 3 to 5k and never do a deal and then are dead butt broke.

And what better place to find beginners and those with very limited capital than BP.. after all its mainly a beginners website., gear toward those starting their journey..

EXACTLY you don't know what you don't know.. that is the mantra of those starting out in real estate and many other things..  its a common expression also for us pilots that fly little airplanes.. we try simply not to run into rocks at 200 mph but we still do with not such good results.

the internet is so full of out and out crooks ( not saying that about this company at all) just don't agree with charing 3k up front .. no other HML does that..AT least the legit ones but there are all sorts of crooks out there.. just put a post up asking for private money you will get 80% responses from out and out thieves here on BP they troll the site.. Mindy Jensen Warns constantly to be on the look out for these crooks..

The Pump an dump due diligence up front scheme has been alive and well for a 100 years.. and that's a fact.

Do a search here on BP for DoHardMoney and another one with the .com on the end, and another one with the three words separated, just to cover all the bases.  They have been the subject of many threads, you'll find out all you want to know.

I am currently working with them. The whole process so far hasn't been very smooth, however neither was the process when buying my primary residence. Dealing with any type of home loan seems to be a headache. After some hesitation we funded the 3,000 dollar upfront fee, which is used for evaluations. After you close your first deal they say that you will be refunded 2,350, because you will spend 650 on evaluations and inspections from your first deal. There is a deal analysis that you fill out when you find a property that is mainly your estimates. The only way to get "100% financing" if all your numbers fall into place and your purchase price, rehab, loan fees, closing costs, carrying costs, etc. all fall within 65-70% of the ARV. Even with a great deal, I don't think you will ever get a truly "100" financing deal. My wife and I put 3,000 earnest money down before we even contacted the lender. As of now our deal falls into the 100% financing criteria they offer, because the evaluators agreed on our estimate of how much to rehab property, and actually evaluated the ARV higher than what we said. However, we are in the stage of getting contractor bids to verify if estimates are in the ball park. We still think there is a possibility we might have to come out of pocket 10K or so but maybe not. I guess my thought is, don't go into thinking your going to get 100% financing anywhere. Your going to have to front some of your own money, I am trying to front as little as possible but am fully aware, I will have to spend some. Who knows what might come up in the rehab, that I need to dig into my own pockets to keep the deal going.

Thanks Jacque! I think we lucked out finding this property, in a great up and coming neighborhood. I am happy with my experience with do hard money so far. I was hesitant at first but after talking with some of the team members I understood the program better. I feel after reading some posts/comments some people get upset if their offer isn't 100% funded but and just quit trying. I understand their pain,but I really feel the program is setup to help people be successful, and I believe they want people to be successful. After better understanding of the process and criteria, I am assuming people bring deals that may be great for seasoned flippers, but a huge risk for newbies. 

Hi Nicholas, 

I hope all is well with you and your deal. Those kind words and assurances are pretty comforting.  I’m curious to see if they actually close or if they disappear for 30+ days after submitting to underwriting like they did to me and several others.  

For anyone curious about DoHardMoney, I had a deal resubmitted to underwriting but then had the rep disappear on me for 30+ days.    After hearing back, he let me know that it was approved but could not explain what happened or what caused the delay in his follow up or response.  He ignored my request to look into it any further.  If you can't identify where the breakdown was, how can you guarantee that it won't happen again?

It's pretty clear that they had no intentions on funding the deal.  It's pretty obvious that this is a scam.  @Jay Hinrichs hit it on the head.  It's a money grab.  In my opinion, they flood the web with fictitious positive reviews to make it more difficult to find the bad ones.  The majority of the reviews didn't close on a deal but were raving about the customer service.  Yes, they seem extremely nice on the phone, but it's a con job.  It's pretty amazing how many stories are similar with them disappearing in order to not fund the deal.  For the few that get funded, I see that they are super difficult on the draw process.  Stay away from them.  It's best to find a local lender or get a referral based on your reputation.  This is what I experienced and have the emails to prove it.  Please avoid them if you can.  

 To Nicholas and Ron,

Please keep me updated on if your deal gets funded or not, and if you ended up coming out of pocket. I have been researching Do Hard Money for months, and have been anxiouslly awaiting responses on customers that ACTUALLY get their DEAL FUNDED, and processed. I have read this whole thread, even responses from a few years ago, and understand many newbies come into the game, giving up after a few of their deals are turned down due to the figures not making sense financially when it came to getting your deal bought. I have a good understanding of knowing you have to submit dozens of deals in, to get the perfect one with a big spread in it. (Most get frustrated after getting 4 or 5 turned down, quit, and write reviews stated their $3,000 was taken. YES, you are required to put it down, and I honestly don't mind doing it If I had assurance from someone else with real results. I mean, who wouldn't do their Homework before taking action, right? So, seeing many attempted users of this program makes me skeptical when I see them talking about not getting their money back, never getting deals bought because the stips are just too difficult, and taking legal action. 

Obviously, you have to purchase your property at wholesale and be able to sell it for retail, that's the game. With that being said, I am skeptical as to why they send "Independent evaluators" out to calculate the ARV, and do NOT even use recent comps. If I were a lender, of course I would want to have several eyes on the property, but what if for example....You purchase a home for $58,000 alright,

say you have a $25,000 rehab budget, you bring your contractor in to confirm this rehab is doable for this amount, The ARV is calculated at $118,000. Yet recent comps show within the past 6 months ONE, perhaps a few Blocks away a similar home with similar sq. ft sold for $135,000. Not EVEN updated. (I am in a little town outside of Charlotte, NC and the market is insane right now, and I watch homes sell in some cases days for $20,000 plus over market value, because everyone wants to live in this little quaint town and commute to charlotte, it's a desirable area to escape Charlotte taxes. In conclusion, you cannot get the deal bought knowing the home will sell for close to $130k-140k Range, with comps to prove several sold for at or over that amount. I have seen older reviews from DHM with similar experiences not getting their deal bought, when it did make financial sense, they just got there $3,000 taken away. Real life experience as of 3 weeks ago; Accepted offer on our home, it was contingent upon buyer selling their home, we accepted it, TWO DAYS they sold their home that valued $124,000 yet sold it above asking price at $156,000. A Little 3 BR, 1 bath 1,100 sq. ft. mill home built in 1940's. That's our market, homes sell.

Now with this being said, I have communicated with DHM and they were professional over the phone, texted me a personal number in case I had questions, and that is great! I Was very impressed with my experience as far as just getting basic info before submitting in an application, and I would LOVE TO have the opportunity to work with DHM on my first deal, I am just very reluctant to send in a credit application until I FINALLY FIND SOMEONE WHO HAD THEIR DEAL BOUGHT. I have yet to find another HML that does not charge outstanding fees, monthly payments, etc. I'll pay the $3,000 to get a deal bought if I just knew it would work, but that's the thing with no personal experiences, you just don't.

Why are people attracted to DHM?  Is it because of the allure of 100% financing?  If you just put 5-10% down, you can get decent rates, even for a 1st-time investor.  I normally see hard money nationwide at 8-12% interest and 1.5 - 3 pts.

Every recommendation of lenders bigger pockets gave me for NC all had nasty reviews, terrible terms, require 10 percent down, or monthly payments. True HM lenders do not require 10 % down, or payments.  if I had it, why wouldn’t I just go and get a conventional mortgage, you know?Have been searching the web for reputable ones here, just no legit ones that I have found. 

I am seriously just leaning towards an FHA 203 k loan, using it for the rehab costs, and re financing it into a conventional mortgage after 6 months so I can get the full ARV for the rehab I did. Suppose I have to do some digging on stips with all this. Has anyone done this?

I know they have strict guidelines, and cannot do demolition jobs, but no worries. 

I recently heard of them and was considering using them. I called them to ask for terms and such and the guy couldn't answer basic term questions. He told me the deposit was $5,000 (everyone here were asked $3,000 apparently) plus EMD (where's the 100% funding?) and said I could talk to someone who would go over the terms with me after I made the deposit, LOL! It was all fishy from the first phone call to me.

Yeah that’s odd Lol, it’s 3,000 and refunded after you close on selling the home. I’m not sure, though. Still looking for good financing options,  sure I will find something after networking and such. 

Originally posted by @Garrett Thurman :

Every recommendation of lenders bigger pockets gave me for NC all had nasty reviews, terrible terms, require 10 percent down, or monthly payments. True HM lenders do not require 10 % down, or payments.  if I had it, why wouldn’t I just go and get a conventional mortgage, you know?Have been searching the web for reputable ones here, just no legit ones that I have found. 

I am seriously just leaning towards an FHA 203 k loan, using it for the rehab costs, and re financing it into a conventional mortgage after 6 months so I can get the full ARV for the rehab I did. Suppose I have to do some digging on stips with all this. Has anyone done this?

I know they have strict guidelines, and cannot do demolition jobs, but no worries. 

Garrett not sure where your getting your data there is NO HML that do NO money down.. its the complete opposite of what your saying.

even with Do hard money they want 3k  plus EM plus review fee.. plus no gurantee of funding.. its a money grab for them making 3k on turn downs.. so that part you have right.

reality is real estate takes MONEY you have no money you need to get money.. not sure why folks think you deserve to do deals when you have no money.  Not you personally as you may have money but just in general.

@Garrett Thurman

"True HM lenders do not require 10 % down, or payments."

How did you arrive at this conclusion?  There are hundreds of hard money lenders out there, and none of them will give you a loan with no down payment and no monthly payments.  Finding one that does one of those is rare (and I've found a few), but both is impossible.

Hard money lenders are asset-based and usually short-term lenders (although there are some that do up to 30-yr loans). The best way for a lender to protect themselves is loan-to-value (LTV) and loan-to-cost (LTC). The lower those numbers are, i.e. the more down payment you put in, the less risk there is for them. What incentive do they have to give you a 100% loan? A borrower is much more likely to walk away from a deal with no skin in the game, and lenders aren't in the business of flipping houses.

If you can get a conventional loan, go for it. There are three main reasons why people choose hard money over conventional: hassle factor, closing speed, and bankability. For one, a lot of real estate investors don't qualify for conventional loans (due to credit, lack of W2 income, DTI, etc) or the property doesn't qualify. Banks also require much more paperwork and take 3-5 times longer to close. If you're competing with another guy who can close in 2 weeks with hard money and you need 45 days because of your bank, there's a good chance you might lose that deal.

Also, the 203k loan is only if you intend to live in it.  If you're planning to do that, great.  If not, the only other conventional loan that provides rehab funds is the HomeStyle Renovation, and that requires at least 15% down payment.

I am just curious as to when someone will post a question about DoHardMoney.com and it will not turn into one giant debate and/or bashing fest? I would like to see only people who have paid the money and are either satisfied or disappointed with their results. 

Originally posted by @Tyrone Abbott :

I am just curious as to when someone will post a question about DoHardMoney.com and it will not turn into one giant debate and/or bashing fest? I would like to see only people who have paid the money and are either satisfied or disappointed with their results. 

 in the few threads over the years I have only seen one person who said they got funded but then the draw process changed.. as in they had to front the draw money to the contractor before getting reinbursed.. so there went the no money loans right out the window.

but I suspect there are some clients out there that have gotten funded... but like most things its only the one's who put up the 3k then multiple 650 .00 fee's for underwriting only to get turned down..and according to those that posted now have no more money they lost it all on this no money down deal that never worked.. 

however by all means though if your looking to use them simply cut the check the 3k  and give it a go and report back.. on how you did.. would be nice to find some that have done well and will post about it..

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