Real estate Hard money Lending For first time Investors in Philly

[Alfred Miller]

Hi 

My name is Alfred first year realtor from Philadelphia and also a new comer to BP. I am thinking about buying and selling real estate in the Philly area. I was wondering if Hard Money borrowing was the way to go acquiring my first property? … I also wanted to know if anyone on here heard of a company from Utah that goes by the name DoHardMoney?

[Jacque Fairbourn]

Disclaimer- Director of PR for DoHardMoney.com

@Tisha Croom- I am sorry to hear that you had such a dissatisfactory experience with one of our team. We're listening to calls and reviewing your account to see where communication could have been improved, thank you for bringing it to our attention. We would never want anyone to feel pressured to work with us. 

I'd like to clear up some misunderstandings that you seem to have about the products, services and loans that we offer. It really appears that this was not properly explained when you spoke with us, so we completely understand why this would raise "red flags" for you. We apologize for this. You were asking questions based upon an understanding that you were purchasing something different, so of course answers would not line up.

It appears you were speaking to someone about enrolling in one of our education programs that includes some tools and resources that would then make you eligible for low/no cash to close funding. While no one ever need to enroll in one of these programs in order to get a deal funded through our various loan programs, obtaining the type of funding that we provide for those with no experience, those with bad credit or those with little capital and looking for as little cash to close as possible is difficult without access to the tools and resources that are based upon the lending criteria specific to those loans. The enrollment fee to which you are referring is not a down payment, it doesn't go toward a loan, does not guarantee that we will fund a deal for you that doesn't meet the correct criteria. The fee is paying for the tools and resource (which also includes a large team of people to help you, extremely valuable if you've no experience flipping houses) So no, it is not refundable if you bring a us property we cannot fund. I've sent you a private message, and when we speak I will be happy to share with you the much higher success rates for the deals we fund for those using those tools compared with the deals we fund for those who have not. (Bigger Pockets will not allow me to share those statistics in this forum)

However, the question you pose above is different than that - You asked what would happen if we funded a deal for you and it went into default. And in that case we proceed just like any other lender would- you would go into default and could extend the loan a bit further by making an interest payment (we don't have monthly payments for the 5 month term of this particular loan program) And because the purchase of the education and tools is not part of the loan of course it wouldn't be returned to you. (That would be similar to expecting the car dealership to refund all the money you'd paid for oil changes and tire rotations because you defaulted on the car loan)

Again- you had a very negative experience with us, and we apologize. We want to arrange a time to talk with you, so that we can have a conversation that actually answers the questions that you have and see what type of assistance and funding you really need to move your business forward. You may have been speaking with someone about the wrong kind of funding and program.

@Caleb Rigby - yes the above rates are high- they are the rates we charge when we fund 100% of the purchase, rehab and loan costs, when we fund someone with poor or even bad credit, when we fund someone who has never completed a successful flip. We have other loan programs with lower rates depending on the deal and borrower.

@Alfred Miller and @Garrett Sowle - It can sound too good to be true. But finding the type of deal that qualifies for that type of funding is HARD. It takes  much more work and time than finding a "good deal" that qualifies for traditional funding from other lenders.