Anyone use Dohardmoney.com to fund a deal? Your experience?

Question

My husband and I did a few wholesale deals last year down in Houston, but have since moved back home to a much smaller area about an hour south of Dallas. He ran across some very motivated sellers that started out asking about 65k for their house and have just agreed to sell it to us for 32k to just be done with it. My husband partnered up with a good friend of his already running a successful remodeling company here when we came back and we are now looking at this home to do our first flip and remodel it using the company they run here.

This would be the first time we have ever used hard money. Not really sure of what to expect and what red flags to look for in a company. Ive heard some horror stories and seen some other people lose money and deals because things were not clear about fees and up front costs between them and the hard money lenders.

This house can be purchased, remodeled and all in at and/or under 70% of the ARV which is hard to come by now days. We dont have a lot of up front cash and heard of Dohardmoney.com and they claim to let you pay almost everything on the back end. Has anyone here in BP ever used them? What was your experience?

Thank you!

Account Closed · Answer

Hard money is usually a last resort.  Private lenders are a much better source of funding.  Especially, for what you want to do.

To learn more about it, seek out Alan Cowgill.  He publishes a  "kit" that will tell you everything you need to know about raising private money and how to go about it.  I don't know how much he charges for it now.  It used to be around $400.

He also does a seminar for about $2,000, I think (it's been awhile since I reviewed his stuff.)  Do NOT waste your time and especially your money attending his "seminar".  It is nothing but a circus.

There is another guy that hosts a 3-day forum on raising private money.  It's called the Pitbull Conference.  It's worth attending once.

Hattie Dizmond · Answer

You only have 2 posts, so I assume you simply don't know the forum rules yet. What you've just posted is an ad for your company's services and belongs in the marketplace.

Travis Sperr · Answer

@Jessica Martin There are a lot of HML's in your area. I think it is best, especially on your 1st time to work with someone local with a solid understanding of the market. Also knowing your cost of funds, LTV, terms is very important to running your numbers, so it is necessary to know what those will be rather than a range. Check out your REIA, other folks on BP, or people in your network and find the best fit for you.

Ryan Wright · Answer

Disclosure - I am the CEO  of DoHardMoney.com

@Jessica Martin

It has been great to personally talk to you and Jeremy on the phone  a few times. It looks like we dropped the ball in getting some phone calls back. for that I am sorry, However I am excited about helping you out on your next deal.  I know you will enjoy the software and your account manager.  Can't wait to see what we can do on your next deal.

Tim Shin · Answer

Hey Jeremy and Jessica, let us know how this goes for you! My wife and I might try working with these guys if you have a good experience.

Santos Collantes · Answer

Hello Jessica.

Very interested in how this plays out for you.

I am also interested in a lender just don't know which way to go.

Congrats on finding a deal.

Thanks for posting!

Jacque Fairbourn · Answer

@Jessica Martin and Jeremy - you should be receiving a call shortly. I apologize for your frustrations. I agree that it is very serious, and we are not taking this lightly. Please fell free to message me here through Bigger Pockets, or ask to speak with me when you call the office if needed. If I am not in the office when you call they can get a message to me as well. Again, we apologize.

Jessica Martin · Answer

@Jacque Fairbourn this is Jeremy I have actually already contacted your company and was speaking with a Erik Thompson. I spoke with him on Friday. We spoke for several minutes and he told me he would call me back in 10 min, I waited around for 30 min the call never came. So I called back today and was advised he would be given the message to call me back. Again here we are end of day and no phone call and no emails. Which led me to doing some research on the company. None of which has been good by any means To some people this is no big deal but to me my word is my bond and if you can simply call me back how can I believe anything else that comes from him. This is very serious stuff and a lot of money at stake. I don't have a ton of money to just throw around and then only have it taken and then not get funded.

Jacque Fairbourn · Answer

Disclosure: I am Director of PR for DoHardMoney

@Jessica Martin - you can reach out to me for any clarifications, and I can point you in the direction of testimonials and satisfied, successful buyers in addition to any that post here

At DoHardMoney we do things a little different than most Hard Money Lenders and as a result we’ve disrupted things in a way that competitors feel the need to raise doubts and concerns about our systematic approach and our business model.  In addition, we occasionally get individuals that “know someone” that’s done business with us and because of the unique approach new investors can get confused on the process we follow.

So here’s a breakdown of questions and concerns that frequently come up.

• 1.First and foremost, if you are a customer and you’ve had an experience that’s caused you any frustration we’d invite you to contact us directly and give us an opportunity to resolve your concerns.
• 2.Most Hard Money Lenders require 10-20% Down, decent credit and some experience.  We have no down payment requirements.  If you have 10-20% down we might not be the best option for you, but for the individual that’s looking at a high ROI by not having to bring a lot of money to the table we might be your best option.  Also, we work with investors that have bad credit and we don’t require past experience.
• 3.Our Interest Rate is 15-18% as an Annualized Rate.  Our standard loan is a 5-month term which puts the effective rate at 6.25% - 7.5%.  So a loan of $100K would have an interest rate of $6,250 to $7,500.  Compared to a loan with a 12% interest rate you’re looking at a difference of  $1,250 - $2500.
• 4.Each property does go through an evaluation process where we send out 2-3 local independent evaluators to the property to determine the After Repair Value of the property.  They are local licensed real estate agents that are active in the local community.  They pull 3 active and 3 sold comps in addition to completing an interior evaluation of the property with an initial breakdown of needed repairs to get the property in resalable condition.  The evaluation process does require $650.
• 5.In part, with the evaluation process, you are paying for a quick turn time.  Our Evaluators will be out to the property within 24-48 hours of us reviewing your loan application with you. If the initial numbers look good there’s no time to waste and we understand the need to get the results of the evaluation back to you ask quickly as possible.
• 6.The draw back to an appraisal, you’re hanging your hat on one individual’s opinion, the turn time is 5-10 business days, appraisers’ expertise is in establishing the As-Is Value not the After Repair Value.
• 7.We do require a $2500 deposit to get access to 100% Financing.  We will finance up to 70% of the ARV with no required down payment.  If you’re purchase, rehab and closing costs are 70% or less you will bring nothing to the table.  In addition to this, the deposit gives you access to the following:
• a.Advanced Deal Analysis Software – enter the purchase price, rehab costs and After Repair Value and we’ll give you a comprehensive break down including costs, net profit, and potential cash to close.
• b.Access to Proof of Funds – 24/7
• c.Contracts and Checklists
• d.Additional Tools & Resources to help you avoid common pit falls in evaluating, rehabbing, negotiating and reselling the property.
• e.Your first evaluation is covered with the deposit.
• f.If the needed funding is more than 70% but it’s still a profitable deal, we’ll work with you to potentially wholesale the property and still make money on the deal.
• g.The remaining $1850 is rebated back to you once you resale your first property.
• 8.Just like every other Hard Money Lender, one of the biggest challenges is helping new investors get dialed in on establishing accurate After Repair Values.  Most complaints on bigger pockets are customers that are frustrated with the After Repair Value that’s established by our local evaluators.  It can be disheartening when the values don’t come back as high as hoped.  This frequently is a case of overly optimistic investors looking at a deal from a best case scenario.  When there are disagreements with the potential borrower we do provide a dispute process allowing the customer to have us take a second look at the evaluations.
• 9.We’re not pretending to be something we’re not.  For a lot of new investors with limited options we are often times the only viable option they have.  We’re more than happy to give you a comparable breakdown of how our costs and cash to close compare to other Hard Money Lenders.

Anyone use Dohardmoney.com to fund a deal? Your experience?

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