DoHardMoney and their "100% financing partner with a pro" program?

Question

My wife and I went to the hard money directory on this awesome site and placed a call to this particular lender. My wife spoke to a gentleman named Julian and after listening to our needs and situation he suggested this program. Is anyone familiar with this program or the reputation of this company and possibly Julian?

Account Closed · Answer

@Damian Smith I am personally a hard money lender doing loans. I'm also a real estate investor and have been full time over 10 years now.....

My 2 cents, or maybe I should say my upfront fee of thousands of dollars, to you is never pay any lender an upfront fee in this business in this day and age. There are a plethora of solid, legit hard money lenders looking to deploy capital. While most will charge an appraisal fee or some other type of fee into the loan process, I discourage you from paying an upfront fee just to see the goods.  And I am in the business telling you this.

Just my 2 cents, or more.. Take it and do with it what you want.

Good luck in your investing endeavors!

James Wise · Answer

I have always thought this company was a complete joke. I do not know if they still do but at one point you could pay them a monthly fee and get fraudulent proof of funds letters.

HOWEVER,

A couple months back one of my agents had a listing. An offer comes in from another brokerage and its a financed offer with DoHardMoney as the lender. He thought it looked fishy and asked my opinion. I explained what I knew about the company to him. The buyers agent was a vet in the industry and stated he has closed several transaction with this particular client and he always used DoHardMoney. We informed our client of our knowledge and impression of the company and let him make an informed decision.

The listing was getting a little stale (was an aborted rehab) our client said what the heck give it a shot.

To my surprise the buyer and DoHardMoney did in fact close the deal.

I am by no means vouching for the company but would like to share with the community that I have personally seen them close a deal.

Bill Hamilton · Answer

There has been so much of this type of scam in the past (I am not calling out this particular company but.....). I would never pay fees of any type in advance except for the appraisal. And the appraisal belongs to me because I paid for it. Some HML lenders don't even do a true appraisal. They walk the property themselves and decide yea or no. Although I have seen lenders try and charge stupid amounts fly out and walk the project, even though they almost never fund a deal. As Jay mentioned earlier, they tend to fund just enough deals to keep the Attorney General at bay.

Joel Owens · Answer

I know nothing of this company. I can tell you that back in the day I did thousands of BPO's over the years for BPO mills.

An interior order only pays about 85 to 125 generally. An exterior BPO about 40 to 70 depending on who the mill is.

So at 650 for an interior inspection BPO it is highly likely that most of that is pure profit after paying a nominal fee to the person completing the order.

Jay Hinrichs · Answer

@James Wise  I have seen this act many many times in the last 4 decades do enough loans so you don't get in trouble with the AG but your focus is on making the money on the turn downs... I mean think about it ZERO risk of default if you just make 2k up front and 650 for every turn down.. But make a loan here or there to the VERY best borrower were your chance of default is slim to none.. Not to those just starting out were the risk is high.

I mean you closed on a failed rehab.. it happens  right ????

Jay Hinrichs · Answer

@James Wise  blind squirrel syndrome.. but just think all the newbies that pony up a couple grand  then the 650 turn downs.. etc etc. I would bet dollars to donuts that is if not their main revenue generator a large %

Jay Hinrichs · Answer

@James Wise  I have never charged.. and I can usually tell someone what I think within a few minutes of talking with them..

When I had my big HML shop  IE 10 states  60 loans a month.. we charged for credit app and appraisal.. nothing else.  But that was after one of my underwriters got the basics to make sure we were interested in it first. I find nothing piss's folks off more than dinging them for small dollars.

But when you make it part of your business model and you have SO MANY newbies in this business that really want to make this happen that really don't understand up front that they don't qualify for a loan based on either cash position credit or experience they think they fall victim to these practices

James Wise · Answer

Yea good point.

As a lender yourself Jay do you feel it is acceptable for a lender to charge a fee to analyze a potential deal? I am not talking about DoHardMoney in this scenario. It is pretty clear they are questionable at the very least. I mean I was shocked when the deal we did closed. But a true lender, I imagine the amount of deals thrown at a true lender has to be overwelming. Is that time worth something? I am not even a lender nor do I give off any impression that I lend money but I am PM'd weekly with people looking for me to fund their deals. It is a quick convo, no sorry I am not a lender the end. I can only imagine the number of deals being pitched to a lender.

James Wise · Answer

No doubt in my mind and up until that deal I assumed that was their ONLY revenue source. I have been pretty critical of DoHardMoney every time I have made a comment about them. I felt that it was only fair to express a positive experience that I had with the company since I have publicly been so critical.

DoHardMoney and their "100% financing partner with a pro" program?

Most Popular Reply