All Forum Posts by: Elias Meek
Elias Meek has started 3 posts and replied 4 times.
Starting journey and have posted about this topic before. Will be going the route of using a hard money loan to finance first flip. Wanting to know some pros and cons of going this route and experiences. What is worse case scenario if house sits on market to long and what all can i intend on being out of pocket. The way i understood was the only money that i would be out would be at closing and utilities once property is under contrat.. is this true? just wanting to know all that i can before taking my leap and it turning into and flop..
Thanks...
Post: FINDING PROPERTIES
- Investor
- Independence, MO
- Posts 4
- Votes 0
What is the best way that you have found to get the best results as far as finding decent properties to work with. Wholesalers? MLS? Just wondering which is the best way to go and or experiences.. thanks
Originally posted by @Ben Stoodley:
Hi @Elias Meek
Sounds like your off to a good start and realize having a financial partner on your side is a good first move. Although hard money lenders typically are asset based, it is good to find a trustworthy, reliable and knowledgeable one that will stick with you for the long run, just as the other two comments have eluded to. When looking for one, I would value this characteristic highly. Lenders that want to build a long term business relationship will likely prove to be a good lender.
- Rates/Terms - very easy to compare, usually stated on their websites. Just make sure to ask what the variables are, what the ranges are determined from.
- Junk Fees - always ask specifically what all the fees associated with closing the loan are. Average junk fees in CA are around $3k in my experience, which is almost completely unnecessary.
- DIRECT Lenders - this is my most likely my #1 tip, make sure you know whether the lender is the actual check writer or not. Ask them how long it takes to close, it should be less than 5 days if the Lender is truly Direct. You don't want to be left hanging in Escrow because your lender doesn't have the funds or decided to fund other investments last minute.
Hope this helps you out a little. If you have any questions, feel free to let me know.
Good Luck!
Ben
Thanks for all the tips. Just really wanna feel like I have a good understanding before I jump.. I'll still be pretty green but would like to feel like I have a pretty good idea of the process and things to look out for. Learning more everyday. Been trying to get an answer about what happens on both ends if the property I have purchased with hard money doesn't sell in the allotted time? Anyone have any experience with this??
Gerting ready to get involved with my first real estate flip. Looking into using a hard money lender to build funds until I can pay cash. Wanting to know some pros and cons of going this route. Trying to get as educated as I can.