Hard Money Lenders
what are most of you rehabbers financing your projects with .HML or going conventional. If going HML what are fees one should pay (points ,intrest; closing cost ,etc)
thanks any reply would be helpful
With whatever is cheapest. Land contract or other form of owner financing such as purchase money mortgage; conventional loan, home equity line of credit, money borrowed from friends and family (or other investors), credit card cash advances- almost anything is cheaper than a typical hard money loan.
Chris
no interest / no payments from Lowes and Home Depot is great.
I personally like the HD CC which is no interest no payments on purchases over $300
I use anything that I can to make the deals work. Predominantly I use private funding which costs me 12% I make up the difference with everything else.
I am writing April or Mays article for REIP magazine on how to get "friendly" financing for your projects. Look for it then.
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The other trick I found was you could call HD and say "I never received my welcome to the neighborhood 10% off card"...
10% off up to a 2K purchase. not to shabby.
why are they declining to offer coverage?
Cjmazur,
Property is vacant and needs repairs. Broken windows, missing doors .. etc.
It needs some repairs before it can be considered unhabitable.
JS.[ Edited by smithj2 on Date 03/07/2007 ]
In general I hate insurance companies and so I carry the risk myself during rehab. One the property is ready to rent out, I then get a NOO insurance policy with liability coverage. I go for coverage for the amount I have invested in the home, not "replacement value", as this saves a chunk of change that I prefer to have in my bank account rather than the account of the insurance company.
how do you deal with the a fire loss, do you just absorb and move on?
just trying to learn.
thanks
What does NOO Insurance policy stand for?
Thanks
What does NOO Insurance policy stand for?
Thanks
NOO stands for Non-Owner Occupied
I was looking at some REOs years ago and they were happy to sell me a policy.
Is it that this have been "red tagged" by the city or county?
Quote:
On 2007-03-07 21:37, smithj2 wrote:
Cjmazur,
Property is vacant and needs repairs. Broken windows, missing doors .. etc.
It needs some repairs before it can be considered unhabitable.
JS.
<font size=-1>[ Edited by smithj2 on Date 03/07/2007 ]</font>
"Replacement cost" (RC) coverage, per thousand of value, is less than ACV or Market value coverage. If you want to save the chunk of change, carry the RC valuation, but with a much higher deductible. The reasoning is that, in a partial loss (of which most losses are), the RC valuation does not depreciate the repair, whereas ACV does (carrier and policy-dependent)...
If the RC and ACV values are "significantly" different (which is usually the case once you invest beyond the one to two-family realm), the rate difference between the options can also be significant. Thus, the need for the higher deductible (another form of self-insurance)...
Quote:
On 2007-03-07 23:58, ypochris wrote:
In general I hate insurance companies and so I carry the risk myself during rehab. One the property is ready to rent out, I then get a NOO insurance policy with liability coverage. I go for coverage for the amount I have invested in the home, not "replacement value", as this saves a chunk of change that I prefer to have in my bank account rather than the account of the insurance company.
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