Is Hard Money Only For Seasoned Investors?

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Hi I was wondering if any one had experience with a hard money lender that made a deal with a new investor.

Comments(6)

  • hibby766th March, 2004

    There is a lot of variety when it comes to HML's. For the most part they look at equity.

    If you have a deal that they'd LOVE nothing more than to foreclose on you so that they get it because it was a great deal, then you're in business.

    Most will, some won't. Find one that will.

  • jar7th March, 2004

    hibby76,

    Do they look at credit or solely at the equity in a property? I don't have that good of credit and want to secure homes to resell in a short period of time. D you recommend any lenders?

    Thanks
    Jar

  • DealerJo7th March, 2004

    Hibby76 makes it sound like the HML's are in the biz to take houses away from the investor borrower. I do not believe so. Most of them just simply want their 12, 14 or whatever % they charge along with the points. Well, if the hose or two slips down the hill, what the hell. That's on investor to prevent.

    It happens rearly. Just as it does for conventional lander such as banks. it does for the HML's. [ Edited by DealerJo on Date 03/07/2004 ]

  • tahuti9th March, 2004

    John is it your experience that HMLs have their own appraisers?

    How does the HML determine the ARV?

    I wouldn't think they depend solely on the CMA from an agent.

    Thanks,

    wayne

  • CharlieG12314th March, 2004

    Quote:
    On 2004-03-09 12:34, tahuti wrote:

    John is it your experience that HMLs have their own appraisers?

    How does the HML determine the ARV?

    I wouldn't think they depend solely on the CMA from an agent.

    Thanks,

    wayne


    Wayne,

    As a newbie mort broker, my limited experience has been that many HML have experience as investors and know the areas where they lend. Therefore they can quickly evaluate the riskiness of the deal based on knowledge and experience.

    For example, I tried to bring a deal to one of my HML's last week. There was no appraiser involved. He has been an investor for 35 years. He could work out that the property was would be his in a very short time.

    Another example was where I asked a HML a question about a property. He know more about the street than I did. (I suspect he owns a property on that street.)

    - Charlie

  • Tedjr14th March, 2004

    I have done deals with 3 HML's. Two had their own appraiser that I had to use and the third was an investor that knew the area well and did not need an appraisal. The all knew I am in Chapter 7 and Chapter 13 and have lost several properties in foreclosure. They knew too that I had done many deals and was making a new start. They have to be really good deals and not just marginal. Something like 70% LTV after points and fix up and 3 to 4 months interest included. I have found three so far and am constantly looking for more.

    Good LUCK and Thank You
    Hope this helps some
    Ted Jr

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