Hard Money Lenders!

Comments(6)

• 
  TheShortSalePro25th December, 2004

  HMLs are a useful tool... and the extra cost isn't that much of an issue if you are able to complete a transaction that you would otherwise be unable to do.
  
  It's all about LTV. Presumably, you will hope to acquire property at a discount.
  
  Find a HML that will make a loan based upon the appraised value, not the acquisition price.
  
  For example, if the sales price is $100,000, the lender might make a 65% or 70% LTSP (loan to sales price) requiring you to come up with the difference between the purchase price, and the mortgage proceeds.... But, if the appraised value is $130,000, and the lender makes a 65% to 70% LTV (loan to value), you have to bring less to the table.....
  
  So, seek a HML that makes it's loan based upon Value, not Sales Price.... after all, why should you be penalized for making a shrewd acquisition?

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  investing4u2nd January, 2005

  I had a good experience with a hard money lender. The loan closed fast and I have purchased my first property. If you want me to share the details with you, email **Please See My Profile**

• 
  loon11th January, 2005

  Here's one possible starting point. There are numerous wholesalers in the PHX area that will "hard money lend" you the $$ you need to buy one of their properties at 16-18% or so. Check the AZ Journal of RE and Business for some leads. Credit is a non-issue for them, and it's all done in-house, you never see the cash til you resell and cash them out. Some properties are deals, some are dogs, and there's lots of competition. But if you get their daily lists early enough and move fast, there's money to be made..

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  sweetangel11th January, 2005

  hi fellows,
  
  I am a newbie too and i want to do some flipping using HML. This might be a silly question to you but for a newbie like me, it is not. I'm reading this HML's website, and it is said that they are willing to loan you the rehab+ acquisition cost to close the loan. So it means I don't have to spend my money at all. One of their qualifying documentation is 3 mos. of bank statement. my question is : why are they asking for 3 mos. bank statement for , if I dont have to spend my own money at all to close a deal?

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  gmoney6914th January, 2005

  Some HML's are private lenders and have their own rules. I know of one locally. They like to see reserves in the bank, almost like a qualifying without credit. I also know private lenders who lend to those in foreclosure, and he likes to see bank statements too. Any one can make own rules. If you fulfill their requirements with your bank statements, proceed. If not, move on to the next HML.

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  web_starblue17th January, 2005

  Hi folks,
  
  Great forum! I have been reading for a week and already learnt a lot!
  
  I am a total newbie and want to start out buying real cheap properties and rehabbing them for resale. Once I do a few of these I plan to acquire some rental properties to give me an income stream.
  
  I am in the SF Bay area and its not really an option for me to buy property in this area the way the prices are. I also just bought my first house here and so by credit will be taking a hit for a few months.
  
  I have a team I can assemble in Michigan, and property is still cheap enough for me to buy foreclosures for next to nothing and then rehab them.
  
  I want to work with a lender that will either give me a line of credit, or quickly turn around loans for me to purchase, quickly fix up and then sell these properties.
  
  Does anyone know of any HMLs out there who would be interested in working with me on this kind of project where the property is located in another state? Are there any HML sI should avoid? Or do I want to avoid HMLs altogether and go down another lending route?
  
  Any advice would be greatly appreciated
  
  Thanks