All Forum Posts by: Mollie Hess
Mollie Hess has started 3 posts and replied 36 times.
Post: Hard Money Direct Deposit
- New to Real Estate
- Columbus, OH
- Posts 36
- Votes 18
@Erik Estrada Thank you Erik! I appreciate the insight
Post: Hard Money Direct Deposit
- New to Real Estate
- Columbus, OH
- Posts 36
- Votes 18
@Robin Simon Thank you Robin. Yes there was no mention of title only that the loan would close and go directly to me
Post: Hard Money Direct Deposit
- New to Real Estate
- Columbus, OH
- Posts 36
- Votes 18
@Bob Stevens thank you Bob. It very clearly stated money would go only direct deposit to me which is what caused questions.
Post: Hard Money Direct Deposit
- New to Real Estate
- Columbus, OH
- Posts 36
- Votes 18
@Bob Stevens Well it seemed odd the whole loan amount would be deposited to me. Banks don't do that for a mortgage, there's an escrow account with title so why would hard money go only to me and not to title?
Post: Hard Money Direct Deposit
- New to Real Estate
- Columbus, OH
- Posts 36
- Votes 18
@Eliott Elias thank you!
Post: Hard Money Direct Deposit
- New to Real Estate
- Columbus, OH
- Posts 36
- Votes 18
Quote from @Peter Mckernan:
Quote from @Mollie Hess:
@Jeff S. Yes, I've been skeptical of all those things you listed and more. It was seeming like a scam but even has a good rating with the BBB. I'm very glad I asked first. I haven't given them any information yet.
Thank you so much for your reply!
I have heard of one lender that does that, money into the flipper's account to show that the person flipping the home and making the offer has the cash.
Thank you. That is good to know some option with this could be legit.
Post: Hard Money Direct Deposit
- New to Real Estate
- Columbus, OH
- Posts 36
- Votes 18
Quote from @Doug Smith:
I don't know who this lender is, so I can't say whether or not it's a scam, but we actually do our draws that way. On a flip deal or a ground-up construction, we close at a title company and, if there is an initial draw the funds will be given the customer at that time or wired into their account, but as work is completed and draws are doled out, the borrower puts in a draw request, we send out the inspector to make sure the work is actually being done, and then we wire that draw into the account. Is that what they are referring to? If so, that's normal for that type of loan. Bridge and Construction lenders don't usually give the borrower all the money and trust them to complete the project. That would be crazy on our part. We have to ensure that the work is actually being completed for each phase per the draw schedule. Is that what they are referring to?
Hi Doug. I am familiar with the draw process. This paperwork referred to the whole loan amount for the property. Thank you for your insight!
Post: Hard Money Direct Deposit
- New to Real Estate
- Columbus, OH
- Posts 36
- Votes 18
@Jeff S. Yes, I've been skeptical of all those things you listed and more. It was seeming like a scam but even has a good rating with the BBB. I'm very glad I asked first. I haven't given them any information yet.
Thank you so much for your reply!
Post: Hard Money Direct Deposit
- New to Real Estate
- Columbus, OH
- Posts 36
- Votes 18
Hi everyone. I've been in contact with a hard money lender and their information says that they direct deposit the loan amount into my account. I hadn't heard this before and wanted to know if this is common practice in this space?
Post: House Hacking Criteria
- New to Real Estate
- Columbus, OH
- Posts 36
- Votes 18
@Brian Bohrer Thank you! I appreciate your input.