All Forum Posts by: Ann Bellamy

Most hard money loans should be used when either the condition of the property or the time frame available for close do not allow for conventional funding.  If you can get conventional, do so.  It's half the price.  And grab it while you can, thinks might get rocky.

The fact that they are still willing to fund you at all is a plus.  Lending restrictions, both conventional and private, will vary every day and get worse before they get better.  You are lucky to still have an option.  And Lima One is not a bank.

Hold your cash and wait.  Educate yourself.  Listen to those who have been through the Financial Crisis and the recession that follows.  Do not listen to questionable gurus and anyone promoting their own special investment.

My HELOC with B of A was frozen during the financial crisis. They didn't like the city I lived in. And my credit score is over 800. At the time, I was already using the line, so they didn't call it due, they just prevented me from accessing any more of it.

I also never keep much cash in a bank account in the same bank where I have any mortgage.  For example, I have a mortgage and operating account at Bank X for one of my businesses.  I pull out most of the surplus cash from the operating account and put it in an account owned by the same company but in Bank Y. That way I get to determine how it's use, not the bank. 

If you think you will need the cash, pull it out of your HELOC and put it in another bank. Like @Jay Hinrichs and others have said.  Just adding my experience.

Normally I'd agree with @Jonathan Greene about going to meetups.  Don't do that now!  Meetups do not equate to stay at home or social distancing.    Work the phones and email to contact the HMLs listed here on BP.  Google hard money and the state where your deal is, and call or email them.

Bear in mind that that many HMLs have stopped funding new deals at all, particularly those funded with hedge fund money.  Rates will go way up for beginners, if they will fund your deal at all.  

So when you speak to them, ask if they lend in your state, if they are originating new loans, and if they are lending to new borrowers, both new to them and new to investing.  Bear in mind that whatever you've heard about rates and terms in the past is likely to change now.

Originally posted by @Maurice Lightner:

@Ann Bellamy thanks for the article do you have any experience with auctions in Florida? Is there a website to search liens or information about a property before I bid on it? Is it best to bid on properties in person?

I'm sorry, Maurice, I don't have any experience with any type of auction in FL.

If you were considering a 203k, then by definition you are planning to owner occupy.  Very few hard money lenders will do an owner occupied loan.  I do know one, he may or may not go to Western MA.  I can connect you with him if you PM me.

Agree with both replies above.  In addition, read my blog post about online auctions:  https://www.biggerpockets.com/...
It is outdated in that you frequently must put up a credit card for your deposit in advance.  So you can be stuck and lose your deposit.

@Vanessa Duguerre, before you close on this, if the previous owner is still living there, check with YOUR title attorney and make sure you can get title insurance WITHOUT AN EXCEPTION for the previous owner still living there.  Do not take the title insurance from the seller.  There are cases in MA where the previous owner was successful in getting their property back through the courts.  This would be devastating to your finances. 

To emphasize, don't take the title insurance through the online auction company or the seller.  Only close if you get marketable title, not insurable title.  

@Joe Rinella, the website is MassLandRecords.com  From there you can access the registries for the various counties.  Be sure to pay attention to the difference between registered land (land court) and recorded land.  What is in one will not be in the other.