All Forum Posts by: Account Closed

@Kyle Gregg Thanks for your question. It really depends on the hard money lender. For example, if you were wanting to investing in a 4 unit apartment complex and live in one while renovating the others most hard money lenders would consider funding even as an owner occupant. 

It really depends on the property and the hard money lender. 

Feel free to private message me with the specifics of the deal. I would be happy to provide you with a more detailed response. 

Here's another tip for working with hard money lenders. 

If you are an owner occupant or plan on occupying the subject property at any time prior to paying off the loan, do not waste your time or the hard money lender’s time by applying for a loan request.

Hard money loans are considered investment or commercial loans in nature. Residential owner occupied loans are not investment nor commercial in nature. If you are looking for an owner occupied loan you need to go to a traditional bank or lending institution.Here's another tip for working with hard money lenders.

Do you have hard money loan questions or tips? 

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Hi, @Rob Scarborough 

Kansas City is a great market for investors. Let me know how I can be of help. Feel free to PM me. 

There are quite a few networking events for real estate investors in KC. Are you a member of MAREI?

Have a good one! 

-JJ 

@Curt Davis , absolutely! All lenders are different and knowing the ins and outs of how hard money loans/lenders work is key. Thanks for your comment! 

Hi, @Matt Roy 

Kansas City is a great market for fix and flips. Let me know how I can be of help. 

There are quite a few networking events for real estate investors in KC. Are you a member or MAREI? 

Have a good one!

-JJ 

Here's another tip for working with hard money lenders. 

Anticipate the need for some money at closing. Don't expect to be able to wrap all of the closing costs and fees into the loan. Even with a good LTV ratio, the lender is almost always going to ask for some money from the borrower at closing. If you are looking to do a deal without putting any money into it you are probably wasting your time and efforts, at least in working with a hard money lender.

99.9 out of 100 times the investor will need to bring some money to closing.

It’s almost unheard of in today’s real estate market for a buyer to be able to borrow all of the money needed and also be able to wrap in all of the loan costs and fees without bringing any money to closing or having any “skin in the game”.

Most lenders require the borrower to have some money into the loan. Whether it’s paying for closing costs, loan fees, or making the up difference in the LTV, a borrower should always anticipate the need for some money at closing.

Do you have hard money loan questions or tips? 

Here's a tip for working with hard money lenders

Complete all of the information possible when submitting your loan request to a loan. Be specific. Be detailed but don’t go overboard. Make sure all of the information is accurate and to the best of your knowledge. Inflating values, deflating scopes of work, or other incorrect submission mistakes will only cost you time and potentially money in the long run.

A lender cannot consider a deal unless the information is provided. Whether the submission lacks the complete subject property address, or omits the estimated ARV, or doesn't include the rehab (or indicates TBD), or doesn't include the information about the subject property (i.e. #beds, #baths, etc.), or a combination of any of these, chances are an incomplete submission to a lender is simply going to be ignored.

Do you have hard money loan questions or tips? 

As an investor I use National Real Estate Insurance Group for all of my own rentals, flip projects, vacant homes, etc. In my experience many insurance companies either don't write policies at all in some instances, i.e. vacant rehab houses, or if they do the premiums are a lot higher. This insurance company writes almost exclusively investor policies.

I'm not a paid spokesperson, representative, or anything like that just a satisfied customer of more than 8 years now. 

Another misconception on this thread is the assumption Section 8 is guaranteed income. There are no guarantees in this business. Get put in abatement for any number of reasons, and many beyond the landlord's control, and you'll find how "guaranteed" this income is. The tenant can also be kicked off the program which also eliminates the payments. Each landlord needs to decide on his or her own whether S8 works in their business model.