All Forum Posts by: Account Closed
Account Closed has started 2 posts and replied 24 times.
Post: Need recommendation for bad credit mortgages lenders
- Real Estate Broker
- Indianapolis, IN
- Posts 32
- Votes 10
@Jaclyn Musselman, you may want to find properties whose owners are willing to do a seller finance deal. There are several members in CIREIA who do these deals on a regular basis. I would search them out to give you guidance on how to do this. Maybe start with Vickie Perry, the Executive Director, to ask if she can give you some names. You can find her contact info. on the CIREIA website. Good luck!
Post: investor groups in Indiana
- Real Estate Broker
- Indianapolis, IN
- Posts 32
- Votes 10
CIREIA has their main monthly meetings on the first Thursday of each month. If you're in town, contact the Executive Director Vickie Perry to let her know you're interested in attending. They're a great group of people.
Post: The Value of Hard Money Lending
- Real Estate Broker
- Indianapolis, IN
- Posts 32
- Votes 10
Here are the terms and fees:
12% - 14% interest only payments
3 to 5 points origination (depends on location)
Appraisal Fee: $425 – $550 (dependent upon location and independent appraiser’s fee)
Inspection Fee: $100 - $150 / inspection
Loan Documents: $475
Loan Admin Fee: $500
Credit Report Fee: $30 ($35 for Joint)
Flood Certificate Fee: $15
Monthly Servicing Fee: $15
- A mortgagee’s title policy is required.
- An insurance policy is required on all loans for the term of the loan.
- Up to 70% of the After Repaired Value (excluding points & fees), not to exceed 100% of cost.
- 6 month term
- 3 month optional extension (extension fees may apply)
While these fees can be significant on the front end, it can save you money on the back end. Just depends on how the deal is structured.
As for the draw process, it's the investor's responsibility to pay the contractor if they require payment up front to start rehab work. If you visit Longhorn's site, they have a video on how the draw process works. Go to LonghornInvestments.com/draw-request to get the details.
Post: The Value of Hard Money Lending
- Real Estate Broker
- Indianapolis, IN
- Posts 32
- Votes 10
That's great @RossMatuszak ! I think some people get intimidated by the the thought of using hard money. In the end, it's about the numbers and they don't lie.
Post: The Value of Hard Money Lending
- Real Estate Broker
- Indianapolis, IN
- Posts 32
- Votes 10
Hi Robert. They operate In five states - Texas, Indiana, Missouri, Tennessee, and North Carolina.
Post: The Value of Hard Money Lending
- Real Estate Broker
- Indianapolis, IN
- Posts 32
- Votes 10
Check out the example on a recently funded Indianapolis flip from 8/30/2018.
Purchase Price: $60,000
Renovation: $51,900
After Repair Value: $213,000
Longhorn Investments was able to cover 100% of purchase and renovation cost. The borrower brought $6,199.55 to closing.
It cost this borrower $6,000 at closing to make a gross potential return of $65,000!!! That is an amazing return on investment.
What has been your biggest success with hard money lending?
Post: Eagle Creek Indianapolis
- Real Estate Broker
- Indianapolis, IN
- Posts 32
- Votes 10
I live in that area. It's a hot market, but it's more primed for flipping. I have the best neighbors ever and they're concerned when people may not be there for the long haul and aren't vested in the community. Opportunity may be limited.
Post: Getting started in Indianapolis
- Real Estate Broker
- Indianapolis, IN
- Posts 32
- Votes 10
Hi Allison,
Try Indy Home Pros Team at RE/MAX. I'm currently working on getting my license but I have met with them and really liked their professionalism. Good luck!
Post: Getting started in Indianapolis
- Real Estate Broker
- Indianapolis, IN
- Posts 32
- Votes 10
Welcome, Corey!
Post: New Member from Indianapolis
- Real Estate Broker
- Indianapolis, IN
- Posts 32
- Votes 10
Welcome Derek!