All Forum Posts by: Dalyn Hazell

@Eduardo Reyes

At a minimum, you need to know:

1) Points they charge (3 points is 3% of initial loan amount)

2) interest-rate, but go a step further and ask if you are charged interest on the entire loan or just what you draw.

3) how soon they want their money back. If less than a year, you need to make sure that the whole project, including the refinance, will be less than a year.

4) Do they work with other investors? If so, do they have a good reputation with them?

5) How quickly can they close? This will affect your offer to the seller.

Final tip: read all the fine print that the hard money lender sends to you. For example, I just had a dilemma in which the Hardmoney lender needed two days advance notice before they could close. This set my closing date back to days and it frustrated the seller.

Good luck!!



@Jesse Soriano Certain deals are better as flips and certain are better as BRRRR. For example, if you get a stellar deal and have a huge spread, you may want to flip it in order to capitalize on such a large profit. However, if it is just a good deal, then if you BRRRR . You get all your money back anyway.

You’re going to need cushion either way, so you might as well choose the exit strategy that fits best with your long-term goals. With that said, you don’t always know the exit strategy perfectly when starting a deal.

@Rachel Mutts

I am exactly the same way!! Two ways I was able to get past this was

1) the 321 method. Recite to yourself three, two, one, and then just do it!

2) instead of fearing taking action, direct your fear to what might happen if you don’t take action.

Best of luck!

Welcome to BP @Justin K.! I heard once on the BP podcast that great deals are made, not found. There are many great deals to be had from your MLS just by making enough low offers! If that doesn't work in your market after awhile, I would second @Ken Nyczaj and @Jordan M.'s idea to drive for dollars if you're on a budget. However - it's even better if you can hire other people to do this for you, and only pay them when you close! For example, I have a friend that's a landscaper and another that's a home health physician that drive neighborhoods all day. They send me deals! By passing out business cards and telling everyone what you're looking for, I'm sure there are going to be deals coming your way.

Another way to find deals easily is by hitting up all your local wholesalers...you know, those guys w/ the WE BUY HOUSES signs. They may mark up the house, but it can save you a lot of time and energy so you're not out there hunting yourself.

Best of luck!

Cash buyers are found by networking with other investors at your local REIA, buying a list of recent cash sales and cold calling the purchasers, or taking with agents to determine who their top investors are. These are only a few ideas to find cash buyers.

As far as finding those who won't cut you out of the deal - I would vet them to make sure they are honest and reliable, and then put the systems in place to make sure you're not scammed. I would talk to your local attorney about this part if you are not entirely well versed on contracts. 

Good luck! :)

Are you talking about capital expenditures like roof, hvac etc.? If so, that amount varies from investor to investor. Many are comfortable with as little as 2x monthly rent sitting in a bank account per property, while some cannot sleep at night without at least 6 months savings per property.

At any rate, I wouldn't let this stop you from looking at your next property. But decide for yourself how much you feel comfortable holding back in reserves for each property you acquire, given your risk tolerance level and other income streams.

Good luck! :)

People like to refinance to a conventional because it makes for a lower overall monthly payment, wiping away your FHA mortgage insurance. In addition, you can only have 1 FHA loan at a time, so if people want to continue to take advantage of the FHA program, they must refinance out first.

Good luck! :)

While books and coffee with investors can be good ideas, I would say don't spend the $20. 

If you have to contemplate how to spend $20, you are probably not in a place to invest in real estate soon. That's ok, everyone starts at a different place. The most important thing to do right now is build a foundation. I recommend starting with the Internet! Blogs and YouTube about real estate are free! :)

Experienced folks recommend local lenders because if you need to talk to them in person, that is available. Also, you are more likely to build a relationship with someone in your home town, rather than some big bank or corporation. Relationships are the name of the game, and a lender will know many other contacts they can refer you to - agents, contractors, title companies, etc.

Feel free to use a lender in Las Vegas or Phoenix, but if you are in this for the long haul, then I would go with Craig's advice. Find 1-2 banks that you can settle down with. It will make processing your loan applications quicker and potentially unlock more friendly financing later, like through portfolio loans. 

Has anyone had success with SkipWithUs.com? They advertise 9.5 cents per skip trace, which is what brought me to them.

Thanks,