DoHardMoney/HML

[Brian Barnes]

So I just got off the phone w/ a Rep from dohardmoney. (A HML on biggerpockets site for IL). Has anyone used their service? How was the experience for you? As a new flipper with limited funds, you all know the frustration w/ trying to start out, so I'm looking at different options. Any opinions on dohardmoney is appreciated!

Here is what I understand about their program.

You have to put $2500 ($650 of that for 2 appraisals of property). The $1850 remainder goes back to you after you sell the property. After you put in an offer, they send out 2 different evaluators to see if the deal is good. If they approve it they provide you with $250k per property (you have access to a total of $750k). It's 100% financing. No loan payments required. Rehab and sale needs to be done w/in 5 months, or more fees will apply. You take the profit, and they charge 15% (annual rate). They loan up to 70% ARV for repairs. After that it's out of your pocket.

Each time you have a property evaluated you have to pay $650 to get the OK from them.  An obvious problem would be if they just keep saying NO, and you fork over 5k in 'evaluations' to get one funded. 

 They only let you do one repair at a time.  For example: You need to do the roof.  You let them know you are doing the roof, and they give you the funds.  Next, Siding.....and so on....Not sure why you have to do only one repair at a time (seems inefficient).  

They provide a Professional support during the journey, proof of fund letters, and other resources....