All Forum Posts by: Account Closed

@Mario L. A Hard Money Lender is a quick way to get financing. Many Hard money lenders let you borrow 75%-85% of the purchase price, for example, a $100k house they would lend 75% of that and you come out of pocket for only 25K. They also lend 75-85% on rehab cost so let us say you think you will spend 75k fixing up a property you will have access to 75% of that 75k on a draw basis. This means that you pay for work and get reimbursed for the work.  The interest rates vary some hard Money Loan is 8-11%.  Is an interest only payments so you pay interest only for 11 months and month 12 1 balloon payment for the balance.  The location for some HL they rather an urban area than a rural because in case you default they have to take it over is easier to finish it and sell it. I hope this helps. 

@Kevin 

@Kevin Pruitt yes most HL would fund you before the 30 days.  

@Rigo V. Hard Money Lender 

@Kevin Pruitt Hi Kevin most HL do is once you win the bid at the auction you usually put some money down at that point in time you can inquire about wanting to get a hard money loan. The actual deposit and sale can be under your name or the name of the LLC you are planning to use. Check your county but many counties allow you 30 days to pay the remaining amount. So you have some time to pay for the loan.

@Andres Valenzuela Many Hard Money Lenders lend on 75-85% of purchase price and 75-85% of rehab cost You can put down from 15%-25% downpayment on the property. You usually buy the property as an LLC and you personally gurantee the property as well. You always own the property the Lender just has a 1st lien on the property. Many auctions require a down payment and they sometimes give you a period of 1 month to pay off the balance and since HL can close quicker you usually can pay the balance before your deadline.

@Christopher Montgomery You Welcome :) 

@Christopher Montgomery for Hardmoney is typically based on the deal. After the deal makes sense they underwrite the members of the LLC and procced from there. You can call any HML and tell them about the property you want to buy and they give you an estimate of what they can give you. Ihope this helps.

@Mario Garaffa 

Like is “Hard Money” easily obtained for a newbie? Yes it can be if the project makes sense. 

Is it more restrictive to someone new? You will have to put more money out of pocket. So, for example, a HML may let you borrow 75% of purchase price as opposed to 80-85% for a more experienced person.

Are there “Private lenders willing to invest in someone new? - YES always! 

@Ben C.   Many Hard Money Lenders use the Tax Return as a way to make sure you are filing taxes and not the numbers involved in the taxes.  We send an appraiser out once we have the Scope of work to make sure that the project makes sense. 

@William Carr, You don't need experience if your deal makes sense you can get approved. You might want to have some money saved up for closing cost and down payment.