All Forum Posts by: D Higgs

Hi. So as title indicates.. silly question re: hard money loans. Looking to purchase a fix/flip property using hard money lending. From research i've done so far looks like in most cases 100% of the deal wont be funded by an HML.. especially to new investors. My question is, Would it be correct to say the funds that me as the investor would be responsible for is (1) down payment (2) closing costs AND (3) the monthly payments to repay the loan?

So, a quick easy example would be: 

$100k final cost of home

$50k repair 

Hard Money terms: 2 points, 100% of repair costs + 80% of property, 10% interest, etc

As the investor, i would be responsible for the $20k down payment + 2 points + the monthly cost of loan

I know there are many other fees/costs that i would be responsible for. My question is just regarding the HML and monthly payments

Correct?

 Hi. i never subscribed. I'm working with a realtor that has access to the info from the site. Still seems interesting for the cost, but i was fortunately lucky to have a connect with data

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Considering hard money loans for flipping venture(s). Through my research noticed companies such as, Lending Club and Prosper.com which are peer to peer lending sites.

Seems pretty straightforward as far as a typical HML- higher interest rate, quick closing, credit check, etc. Wanted to know if anyone could share pros/cons of using this type of loans for REI? Any advice?

Thanks BP!

Got it. Thanks for reply!

Several questions about title companies I couldn't find online. I am currently trying to build my team to assist in flipping houses.

1. What are benefits of investor title company? Is it just speed in which title search is done? Cost?

2. What questions should I specifically ask when building my team?

3. What are some things to be aware, or be mindful of when dealing with title companies?

4. Any horror stories that could shed light on importance of a good title company? Seems like I can just go online and have any title company complete a search in a week...

Thanks BP

@Brandon Craig

@Cassi Justiz

Hi again. Hope this helps. 

3 bed/ 2 bath

Finished basement

Garage

Mortgage Balance: $330k

Appraised value: $335k --(this was before we finished basement)

CMA: $340k

Mortgage: $2500/ month

Rent.com

$2600/month for a similar property (same # of bedrooms, bathrooms,  sq ft)

@Cassi Justiz

Makes sense. Thanks!

@Cassi Justiz

Looking online briefly, there are similar properties in the area around the same cost/month as our mortgage now. One of my questions would be, how much monthly profit would everyone recommend we clear to make it worth renting? $200/ month? $500/month?

Considering our on-hand funds are decent, would it be wise to rent? What if roof goes out? What if tenants are destructive? We wouldn't have money to fix, etc

My wife and I are in the process now and completing home repairs. The goal, at least initially, was to fix up the needed repairs and list the house for sale this coming spring. The thought, however, came up- what if we rented out the house instead? I'd love to hear some things to consider... pros/cons of each? Thanks in advance

Quick recap of situation:

- lived in house for 10+ years

- very little, to ZERO equity in property (very very bad mortgage initially)

- we refinanced 6 months ago to much better terms and lower monthly costs

- love the idea of passive income, all while building equity

- biggest concerns are major repairs that are inevitable: roof, furnace, electrical

- cash reserves are decent, but not significant

- very good credit score

Dennis