Smaller fees, and what not I know what to expect with a HML, I am not saying I expect to just not cough up any cash, I just mean 10-15k plus is a little much when I do qualify for a conventional loan, and can avoid getting charged all that interest. Reason I haven't, agreeing with you over the terrible headache of going though a mortgage process, stips, and risking easily loosing a flip home when someone has funding ready to go. So of course, I would rather go with HM if I knew who to turn to! lol
There’s no reason to start a debate, I just wanted an answer as to why nobody got a deal funded through DHM. until I find assurance, I suppose I just won’t use them.
But if you look in previous replies you can search on bigger pockets, “ DoHardmoney”, “ Do Hard money” (spaced out), and dohardmoney.com and find some older threads on more detailed reviews, one user claiming they used them and someone actually took the time to look up her home she purchased, the loan wasn’t for 134k I do believe, home was bought for 84k. The lender was listed as DHM. Only deal I saw that was funded. Hope this helps, for anyone searching the answers like myself.
As several others have mentioned, I think your expectation of the no down payment is unrealistic. You’re going to be hard pressed to find a legitimate, reputable hard money lender that’s not going to require at least 10% down of purchase price, if not purchase price + rehab, especially with no experience on your resume. That’s just the reality. There’s a reason why you aren’t finding any well documented lenders who truly offer $0 down. So you say you would be more than happy to use hard money as long as you can find a good one - there are a lot of good ones out there, but not if your main qualification is that they do not require a down payment of some kind...and again, usually at LEAST 10% of purchase, probably more, for your experience level.
Disclosure: Director of PR
@Garrett Thurman - thanks for posting your question. We DO fund deals, we have many of them posted on our website (with the HUDS) on YouTube, on our social media profiles. Not every borrower using our services is a member here on Bigger Pockets, nor are they using their limited time to scan the forums here looking for opportunities to talk about their experience with us. Unless they for some reason have a keyword alert set up for our company name (and why would they do that?) they are not going even know that the question has been asked. When we ask our borrowers or members to come post here about their positive experiences, other members of the forum give them a pretty hard time, because usually they are new to the forum. (see here https://www.biggerpockets.com/forums/92/topics/254... )
It is funny how a new forum member posting about a bad experience is immediately believed but one saying something positive is suspicious.
We cannot post "proof" here in the forums, when we do it gets deleted as promotional. We can show successful borrowers. We can show that no one needs to enroll in our 100% Financing System (for which there is a $3000 fee) in order to obtain a loan from us. We can show that those who are enrolled bring us deals that are less risky and more profitable than those not enrolled because they've used the system.
Of course we have people who are unhappy with us (like every other business, non-profit, politician, author, country, fictional character, book, religion, idea.....) We are a company comprised of human beings serving human beings. I can tell you that when someone posts about a negative experience here and we go and review all the documentation and listen to all the phone calls regarding that experience, that rarely is the entire story told by the poster. I can tell you that we care deeply about the success of those enrolled in our system and those to whom we extend funding. We make our money on the deals we fund. The enrollment fee is what gives us the resources to help all of the investors so new to real estate investing that they don't know how to find a profitable deal, how to negotiate with a seller, how to get a firm contractor bid or how to complete a rehab and list the property.
@Ron J. - please connect with me here so that I can look at the specifics of your situation. ( I have sent you a request)
@Worth Styles - I believe there may have been a misunderstanding about the amount- we like our borrowers to have roughly $5000 set aside to cover the things not included with the loan or problems that may arise while completing the rehab. No one is ever required to enroll in our system in order to get a loan from us. Anyone with a property under contract can submit a loan application and move forward with us from there, without being enrolled. However, new investors often do not understand what constituents a good deal, let alone one that we can fund at 100%. If we turn down a opportunity to make a loan and make money on that deal it is because we can see a problem with it. When we turn down a deal we are turning down potential profits, we try to avoid turning them down. And some people choose to complain about the experience instead of learning from it, learning why the deal was too risky or why the comps they thought worked do not. We want to fund deals, whether the borrowers choose to use our system or not.
@Tyrone Abbott it is interesting to us as well that many forum members who have never used our services, or even our competitors and others using Bigger Pockets to make their money and promote their business, feel free to repeatedly come on this forum to "chime in" (there are even some who show up on virtually every thread about our company) We HAVE made mistakes, we DO make mistakes. And we correct those. But we do fund deals, we are a licensed HML and are happy to work with those who want to learn how to recognize the very specific type deal that we fund.
HI @Garret Thurman,
My deal had a great spread. I didn't close with them. I believe their slogan is "Every good deal gets funded" or something like that. From research, it looks like most good deals don't. A good deal is a good deal. You shouldn’t have to bring 4 or 5 good or great deals to get one funded if the numbers add up. This is especially if THEY agree that the numbers add up and look good based on their own evaluation.
I sensed that I was being scammed a bit early in the process once the eval and comps and requirements to fund came back. I raised my concerns but was assured that I wasn’t. I decided to push ahead with them based on their comforting words, (had to submit the contractors #’s and agree to their repair requirements), but also reached out to another lender that one of my partners use often. I'm in California and the property is in NJ along with my team. I already put up 15k for the highest and best. I ended up putting up another 15k out of pocket + closing costs, etc and did the deal with the other lender as I would have lost my deposit dealing with these clowns. I’m funding the repairs myself.
Long story short, I wouldn’t advise that you go with them. Dude submitted me with the contractors info on 11/27 and didn't respond until after Christmas. He then ignored my requests to figure out where the breakdown in communication was. lol, they're terrible. I’m actually making it my duty to share my experience with those that ask in BP. This is not slander, but my own actual experience, facts and opinion.
I think the allure with DHM is the offer to run 3 projects at once. Also, since I’m in Cali, it’s comforting to have an outside opinion with the eval. Through this process, I’ve found that it’s not worth it and you’re more than likely going to lose money as opposed to making any.
You said it would take a couple of days for someone to get back to me. It’s been a week.
Thanks for the info man, I hate to hear that happened. I am working towards funding my own rehab now using someone's IRA, hopefully it all works out.
I spoke with Travis from DHM a few times. We had some productive back and forth discussions in regards to the process, improvements and the best way for us to move forward to do better business. We were able to resolve the issue amicably.
Travis, I appreciate your time and input.
Hello im Curtis W. Reigh
i have been with them for 2 years now
Do not use them i am here to give you reasons why they will try to rebuttal and state a bunch of false things but these are the real facts of the program
1 They say no cash to close that is a lie out of 5000 deals they do maybe 1 will be no cash to close but they market it for no cash to close. which i think should not be allowed but they do allow it
2 you will need a $3000.00 "deposit" this is not a real thing you will be paying them 3k you will not get 3k back if you wish for a refund it is not eligible for a refund at all so kiss that good bye
3 referring back to number 1 when they so no cash to close they are actually saying an average of about 20k cash to close. you can find one of the best deals in the world and you will still pay 20k at closing
4 when you do close on a house u are refunded 2350 out of the initial down payment because 650 is paid for the inspectors but that is already after you paid 20k to close so your pretty in the red
5 if you dont like there practices and how they operate then they will in fact tell you to pound sand and just deal with it
so please read this before you use them dont be a retard like me and lose 3k for nothing they are truly bad people and they lie straight through there teeth i though the negative reviews were a load of crap and here i am wishing i listened to them
Disclosure: Director of PR
Upon reviewing your account, all of the calls, emails and loan applications we've been unable to verify much of what you state here. Please contact us so that we can see where the disconnect happened.
They are horrible! Nothing more than Con-Artist. They have forced me to give them 5 star rating before the loan approval. In exchange of getting loan approved. Just one day before the closing they have notified me that the loan rejected. After working for more than 3 weeks and receiving all the pre-approval. They literally promised that the loan will be approve, NO matter what. DO NOT waste your time with this people. I am sure they are operating in a Used-Car at a trailer!
@Peyman Azizi When we look up your account in our system the only thing we can find is an incomplete loan application. Could you have been working with us under a different name or account? We would like to research this and get the correct information. Thank you
Disclosure: Director of PR
I have been able to find more information regarding your loan. It looks like that because the amounts of the loan were out of our direct lending guidelines we were working with another lender to help you obtain funding. It was this lender that ultimately declined your loan, with such unfortunate timing. We have been working with them to get a decline letter, but do not yet have that. We can understand why you would be frustrated and wish that you had been willing to work with the representative who called you about this matter rather than just cursing at her and hanging up.
The loan amount was only 80% of LRV. But, that is not an issue. The issue is, they dragged me for more than 3 weeks! Promising that the loan will be approve. 3 weeks of my valuable time totally wasted! As a result, I have to pay more than $7000 penalty to extend the closing. I have already found a new lender and already got a FULL approval to close on March 8th. So, GO TO HELL!!!
What do you expect?? After I have lost about $7,000. All because of your lies and miss-leading? Do you pay my loss??
Your office had a minimum of 2 weeks to let me know if this loan can not be approve. You had all the documentations and facts! Why do you have to wait right at the closing date t??!! Just keep your daytime job! Used-Car salesperson!!!
@Peyman Azizi this is really something.. holly molly.. I love the 5 star rating before we fund you.
HML simply do not work the way these folks work.. but I get the advertising works.. it draws in a lot of folks.
But most lenders lead with their best rates and such.. very few borrowers qualify for them.
the fact is no money down simply dose not exist unless its someone very close to you.. they would go broke with losses if they did this.. and the 3k up front is really genius really.. to sell their version of how to make money flipping..
its up to the public to vette this stuff.. there are very good HML out there.
and a host of other regionals.. you don't have to go through this if you don't want to .. and when you talk to these other companies they give you the reality .. not a sales pitch.. big difference.
Disclosure: Director of PR
As we have done further research into this situation and spoken with more of the parties involved, listened to phone recordings and reviewed emails.
In our first conversation with Mr. Azizi we explained that the transaction was larger than one that we would fund directly but that we could contact our other lending partners to see if we could help him obtain funding. An appraisal was ordered and we submitted the deal to our lending partner. We outlined what those terms might be, but no loan offer was ever extended either verbally or in writing because due diligence needed to be conducted. No closing date was ever set with him by either DHM or the other lender. No lender would give final approval until the underwriting is complete.
During the underwriting process, it was discovered that among other issues, this was not an arm’s length transaction.
This reason the lending partner determined not to extend an offer.
For those who may not understand what an arm's length transaction is, Investopedia lists the following definition
"An arm's length transaction is one in which the buyers and sellers of a product act independently and do not have any relationship to each other. The concept of an arm's length transaction assures that both parties in the deal are acting in their own self-interest and are not subject to any pressure or duress from the other party. It also assures third parties that there is no collusion between the buyer and seller."
The full article is available on that website and was just updated a little more than a week ago.
At no time was Mr. Azizi required to leave a review.
Total Lie!!! These people are just fake and master of coverup. Why, do they force me to rate them before the loan approval started?? She clearly asked to provide a 5 star rating, and told me that "it is part of the loan process"! She said without "Survey" they can not start the loan process?!! Then about 10 days after the process, suddenly the loan officer was working on my case "Cody Brown" disappeared without any trace. I was keep calling, texting, and emailing him without any answer. Then, just few days before closing when I complained she said "He is no longer with company"!!!
No matter how they would like to cover their failure and act of Con-Artist, the facts always revealed!!!
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