Need " Hard Money"?????

I am involved with hard money. Drop me a line if you wish to talk.

Ask your banker HOW something can be high risk when the loan is secured by real estate, they would be in 1st position, that you have under contract for 70 cents on the dollar after repairs?? Hard money lenders WILL lend at those numbers. However if you do not know how to approach these lenders they will not spend any time with you and blow you off!

Also, NEVER base your final FMV numbers based on what zillow or any other website states! Use those sites when making your "first cut" on whether you are going to do further research on the property, Sold comps from 90 days back and listed comps on the market now and comps currently under contract on houses just like yours as close as possible to your property. That's how to determine FMV!! You want to know what they truly sell for, how long they are on the market and how many are listed close to your property. The price might be good but what if there are 10 for sale in the area and they have been taking 7 months to sell? If you are going to buy and hold or flip makes a big difference in your acquisition strategy also!

Hope this helps,
Michael Mangham
MD home Acquisitions LLC

Thank you Micheal. How do pm I tryed to pm you and Im having difficulties. How do you put people in you favorites>?

I believe that anytime a banker says a loan is high risk it means one of two things. That the credit worthiness or track record of the buyer puts the bank into a uncomfortable position if they were to lend and/or the bank just has had too many problems with similar types of loans.

Hey there,

Not sure if you've seen this before already but I thought maybe this could help you out with your hard money situation. Go to this website ~ http://reiwired.com/home/ I just went through a Webinar about this and it is amazing! Hope this helps out in any way and wish ya the best!

Andre

Properly present the loan application to the hard money lender on the property you have under contract and if the numbers are right they will loan, of course you must have a good credit history. I have done several hard money deals and never put my foot in a bank!
SynysterAndre, I would suggest you stick with Dean and his programs,his stuff is the best! No program or website or 800 number will provide you with the things you have to do for yourself anyway. Until I find some program that actually finds and puts the properties under contract and then sells them for me (ain't gonna happen) I will stick with Dean!

DG all the way!!
Michael Mangham
MD Home Acquisitions LLC

what if there are no available comps in the area you are looking? Where I live alot of houses haven't sold in the last 90 days and most appraisal values are from 07

You may want to try a different area to invest if nothing is selling and appraisals are from 2007! Maybe go back 6 months and check, but I would not go any further back! 2007 will reflect housing prices before the bubble burst.

It could be a great area that has no turn over and if you could find a property it would sell in an instant, so which one is it? You know the area, make your decision and act!

Hope this helps!
Michael Mangham
MD home Acquisitions LLC

the properties I am looking at there are for keeping as rentals, I just want to get them at a good discount.

Try this broker, I am working with her right now, and she found me something, hoepfully with god's will I will be closing on one loan in a few days which is a cash out refi, and I have another loan which is a rehab; so I am doing two at once. She very nice and have a lot of contacts

Diane Boerstler
Real Estate Loan Specialist
Individual, Business, and Investor Loans
Traditional and Hard Money Loans
Cell: (206) 914-5451
Fax to Email: (206) 376-0536

I have gone to many sites before I joined DG family , i have to say our site is the best''' we all share info and care about each other. You guys/gals
are wonderful'''

All I just spoke with a local long time investor here in KY. He advised me that there has just been a law passed against HM lending here in KY.

I am hearing similar stories across the country..... We are we to do now?

Does anyone have any thoughts on how to get around such a thing?

Hard money is alive and well in Colorado. Why don't you call a hard money lender in KY and ask? Google Hard money KY and call a couple. People can lend their money to whoever they want as far as I know!

Let us know what you find out.
Michael Mangham
MD Home Acquisitions LLC

but everyone is still using them. My investor friend said that if they tried to take it to court the law would end up getting removed anyway.

a difference between hard money and transactional loans? Is it a simular process? ie;same day financing only. Or is there usually more time with hard money lenders like 72 hours instead of 12 hours(same day funding)? Are the interest loan rates better with hard money verses transactional funding?

Transactional funding is used to fund your half A to B purchase when doing a double closing. They usually charge 1.5% to 3% for their "flash cash" They will not provide this funding unless you buyers B to C money is in escrow with the title company. In other words you must have a real buyer in place to use this type of funding. There funding is usually same day only.

Hard money is for actually purchasing a property. Depending on the strategy for the property you buy, fix and flip or for holding you re fi at a decent rate asap. Hard money is for 6 to 12 months at max. usually. These lenders charge from 2 to 6 points up front and 10% to 15% interest. One of their requirements is you have at least 6 months of loan payments in reserve in your businees account.

They are all a little different so contact several and ask their terms and requirements to get loan. Transactional lenders usually don't care about your credit, just the deal and that your buyer is in place.

Hard money lenders will usually only lend 70% of ARV. Once again, contact them, you will learn real world information that way.

Good Luck,
Michael Mangham
MD Home Acquisitions LLC

some now are asking about credit, and also now adays some even ask 10-12 points as well. Some even require a percentage down too. You have to ask around.

No legitimate Transactional funder charges more that 3% (read SCAM). If its higher than that say no thanks!
More that 6 points on hard money, look elsewhere (read SCAM)
My transactional funding company charges 1.5%
My Hard money lenders charge 2 points and 12% interest. Started with these guys at 4% and 15% interest. Did a couple of deals and they lowered their rates!

Check them out and be careful,
Michael Mangham
MD Home Acquisitions LLC

hard money lenders do you use? I found a private money lender from this site, he's in new jersey. My particular area doesn't have hard money lenders, also do you know of any transactional lender that still offers 30day trans funding? If you can please help me, I am looking to buy a house. I am going over there tomarrow to get it under contract.

What are the numbers and what is your exit strategy on this property. Let me know and I will PM you with a recommendation.

Michael Mangham
MD Home Acquisitions LLC

I am buying the property for 35k needs no work, fmv is $55406,3bd 1 ba 2320 sq'. My exit strategy: now if I need 10% down at closing I am going to lease option to a tenant buyer, but if not then I am going to rent to the college students at Notre Dame, gross rent will be between 1200 and 1500 a month before taxes, mortg paymnt, and insurance. I could also sell to someone I know who has rentals for 45k or 55k.

no property sits vacant near ND, the colleges are both always full!

for the breakdown on hard money and transactional funding . I think I will try transactional funding for my first deal I'm still working on.. Thanks again.

Hello fellow DG'ers!
We have found several properties we are interested in making offers on and are planning on using hard money to fund our transactions until we can do fix up and rehab on these properties and then either sell or offer as lease with option to buy.
We have some area hard money lenders that we want to approach to "interview" them to see which one would be the best fit.
What are questions you would suggest we ask the hard money lender firms????
Any help or suggestions would be appreciated!
Homevestor
Southeastern Indiana Properties
www.seindianaproperties.com

Hi Jimmy, I saw a post where you said you were involved in hard money. I live in Nj and am interested in maximizing my Real Estate business. I would love to chat with you about how hard money works and the benefits. Hopefully we can work together or you can point me in the right direction. Thanks and God bless.

Deshone - Mr Real Estate

Hi Jimmy, I saw a post where you said you were involved in hard money. I live in Nj and am interested in maximizing my Real Estate business. I would love to chat with you about how hard money works and the benefits. Hopefully we can work together or you can point me in the right direction. Thanks and God bless.

Deshone - Mr Real Estate

I heard you talk about hard money and you said that you have to have good credit. If you have good credit, why not just go through a conventional loan. Why pay the higher interest and points? Just asking, I haven't worked with hard or private money yet and I'm trying to find out more about it. I thought these type of funds were for people whose credit wasn't so great and couldn't get a loan. Thanks

Deshone - Mr Real Estate

I just noticed that you broke down the differences between transactional funding and hard money lending. I was a little confused on that. Well, what would be the need and benefit of hard money? I sure there are some, but I don't know them. I'm trying to make sure that before I team with a real estate I not only have cash buyers in place but also transactional funding in case we can pick up a great deal on an REO. Are there any other situations when transactional funding is necessary? Sorry for all the questions. Hopefully this will help people other than me.

Phil you are going about it all wrong, If you have that many properties with that great of a discount you are setting on a ton of money. But going to the banks and looking for hard money lenders is not the way you should go about getting these properties under control. You should be looking at whole selling
and in order to do that you need a list of investor buyer. Which is one of the first things you should have learned in real estate is to start building a
buyers and sellers list. These list are essential to the success of your business. If at all possible archive Deans September 14th confernce call and their you will find so much info to getting you started you will be blown away
He tells you how to find cash buyers,how to find sellers, how to find a good realtor to work with you,what to say to the realtors,cash buyers,and sellers to get your deals done. Beleive me that conference call is fantastic,amazing and anything else you want to call it but it helps you get stsrted if you follow the lead and take action If you can't find it pm me with your email and
I will forward it to you. I listen to it over and over again and each time I learn a little more.

Hello Phil

That's wright you don't want to loose out completely,plus if you come to this for answers, and help, then you should offer deals you can not fund to the other DG members,and get a finders fee.

Jim Kendrick