All Forum Posts by: Corey Davis

@Brian Bower Brian, hard money is a very short term loan based on the value of a property you are using as collateral.

Are you joining our little Portland investors get together soon?

"not to mention it's coon now for a hard money lender"

=not to mention it's COMMON now for a ...

My iPhone likes to re-spell my perfect grammar...

@David Beckman Wow, $1500 is a lot of money to lose. If I lost that kind of cash I'd be consulting an attorney.

I'm familiar with the $600 for the inspection fee, what was the $1500 for?

@Jay Hinrichs Thanks! That's a whole new subject to put on my list! What would be the best way for me to find out more?

@Vance Petersen I actually DO bid out out my projects with hard money lenders the same way I do any other portion of a project. Hard money lenders are NOT loaning on value of a deal alone any more, like Jay Hinrichs mentioned, those times are over. And, frankly, more often than not, "reputable" lenders are fitting in upfront fees in the form of various business costs these days, not to mention it's coon now for a hard money lender to only loan on a project that you have a significant amount of funding for, and then compensate you as you progress.

Hard money seems to be a misunderstood product for first time RE investors. The truth is there is NO free money in a hard money deal. You DO have to have your own cash, decent credit, AND a very good spread on your project to get funded through a hard money lender on anything in the 300-500k range in my personal experience. (I've only operated in L.A., Portland, and Seattle, other areas might be different)

On the subject of DoHardMoney.com, they are often one of my resources when getting funds together in the initial phases. I generally go with other lenders because I have funds already, and don't want to pay the upfront fees they require for the pre-funding inspection $600. Though, I have met numerous first timers (in person, not on the Internet) that have successfully funded a flip through them. Personally, if I needed the product they offer, (100% financed projects) I'd put up the $600 and accept the huge financing fees, over missing an opportunity.

An insight to the overwhelming number of negative feedback on the Internet regarding that particular company, I believe, is people wanting to believe the hype of "free money", and discovering the true cost of it.

I read negative reviews for banks all the time too. All the time. Am I going to decide against using a bank because of it? Not if I need a checking account. Negative feedback is extremely useful when used correctly. Many people have majority opinions on companies, people, restaurants, football teams... Does that make those opinions facts? Nope. Just opinions. Do those huge amounts of opinions all correlate some kind of tendency toward a particular experience? Yup. For sure it does.

I've met people that have used DoHardMoney, so I know it works. Is it gonna suck for you? Popular opinion would support that.

@David Beckman so you paid DHM a ton of money but never got funded???

@Jay Hinrichs You do a loan on 50% cost of a fully rehabbed property? For what exactly? I'm learning a lot about creative financing these days, and I'm trying to figure out what that type of loan would be for? Are you loaning against equity on one property for funding another?

@Eric M. I mean, I'm assuming there's still a legal contract of some kind, otherwise how are both sides protected?

@Eric M. OK, so a couple different people are interested in funding projects I'm developing. If the structure is to be a private money lender situation, what kind of legal entity and contracts does that usually involve?

@Account Closed I had kind of pictured an out-of-the office environment though... I usually only go into an office to sign contracts. Even then I prefer to docusign electronically. Is there a coffee shop/casual restaurant in Lake Oswego that will work?