Is there an alternative to using HML's?

Question

Aside from cash, HELOC, or an investor, is there a way to fund the bulk of the purchase and rehab with a different type of loan?

Do smaller banks offer "rehab loans" that are not for your primary residence? 203k or something like that?

Amy Wan · Answer

Account Closed, you seem to be promoting this specific crowdfunding platform quite heavily across BP. Which is it, and what is your relationship to them? Do you earn a fee for bringing them leads?

Amy Wan · Answer

Account Closed I think BP is about answering questions that folks generally have, and not soliciting (or at least if someone is soliciting, it belongs in the marketplace). Happy to hear about your insight and how a lender helped you solve a problem or challenge. Less happy to see postings saying "contact me to intro you to a lender." And I think I speak for several community members when I say that I'm jaded by the sheer amount of folks posing as helpful folks on forums as a method to solicit business.

Amy Wan · Answer

Account Closed, its awfully nice of you to spend so much time and effort marketing for the platform. I think I've seen you send roughly 15 of the same type of messages just in the past 2 days. Given that they're in the securities and lending businesses, which are highly regulated industries, it would cause a lot of trouble on their part if you weren't properly disclosing any financial relationship to the company on your part.

Account Closed · Answer

Of course there is always a ton of funding solutions and strategies. The question is, which is best for you based on your particular circumstance.

Chris Martin · Answer

The interesting thing is that the LLC they operate under was created a month ago. They have no track record, yet they say they 'vet' the deals they underwrite. There is little transparency with this group. Personally, I'd be careful with organizations that don't publish their track record. But that's me.

To the OP, if you have good finances and good history, you can approach a commercial bank for "rehab loans" that may not make it through a GSE underwriting.

Hope that helps

Andrew Postell · Answer

@Patrick Philip some clarification and answers:  as mentioned above the Hard Money Loans are loans that can close quickly.  Most HML lenders will want you to have a clear title....so as soon as title is cleared then a HML can close.  On a conventional loan, the closing time will depend on your lender.  The better they are the quicker they will close.  On a rehab loan you should expect a minimum of 30 days no matter how good they are.  If it wasn't a rehab certain lenders could close a conventional loan in under 30 days.

I would encourage you to NOT think of a Hard Money Loan as a "bridge loan".  A bridge loan fills the gap time between two loans....so if you bought your next home but you can't close on selling your current home for 2 months, a bridge loan fills that gap time.  That is the definition of a bridge loan.  Those are mainly on your primary home.   Hard Money Loans are loans that can close quickly, are normally on investment properties, and you can wrap renovation work in to those loans.  Hope this helps.

Account Closed · Answer

@Amy Wan

I don't have a relationship and have nothing to report to you or anyone else. They were able to solve a pretty substantial issue that my investment group was having qualifying for conventional financing. It happens to be a common problem that many on BP also experience and are seeking solutions. So, I spent some time on a Saturday morning reaching out to other members facing similar challenges to provide insight. Isn't that what this community is about? They are great people and as someone who runs a start-up, I want to see them succeed.  What is wrong with you?

Account Closed · Answer

No relationship.  I think they have a great platform and great team and I want to see them grow in this space.  RealtyeVest

Nathan Click · Answer

@patrick philip - I would not believe everything you read on google.  That's not correct.  I'm happy to explain how these products work.  Feel free to reach out if you like.

Is there an alternative to using HML's?

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