All Forum Posts by: Barry Ingram

Scott, the advice you are getting is right on. Hard money and buy and hold are not the best marriage. They can make it work, but short term thinking is going to be the best. 

Here is a post I made on being successful with Hard Money Lenders.

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If you want to be successful and have a better chance of getting a response and hence getting the funds you need from a hard money lender.

I want to suggest some details you should consider having when you make your request.

Must Haves

1. Property Type
2. Purchase Price
3. ARV
4. Cost of Repairs
5. How much cash you have on hand to use in the deal
6. Your credit score
7. How many flips you have done within the last year
8. City and State of property
9. Do you have a contract? If not, give details on why you expect to get the contract

Should Haves

1. Did you physically see the property
2. Do you have partners
3. How was the ARV determined
4. Do you have an appraisal or BPO
5. If it's a rental unit, does it have renters, how close do you live, will you be managing it
6. What is your exit strategy? Fix and Flip...Fix and Hold....BRRRR...etc
7. How were the costs of the repairs determined
8. Do you have the funds to start the project and make it to through the first draw (if the loan is setup that way)

Things that make the lender feel better

1. What is your net worth
2. Will you be the general contractor or will you hire one
3. If your credit score is low, do you have bankruptcies
4. What is the expected time frame to finish the renovations

Remember in hard money lending we feel that each deal should be a win-win-win, so we want to do the deal to help you get started on your project and help our lenders make money. We want to offer our lenders deals that show that risk is mitigated as much as possible.

Be sure that you know what fees you are haggling over. If you are going back and forth about high points between two lenders and miss the extra "fees" that might be charged by one, you are missing the point. For example we don't have any "application fees", etc.Know exactly how much you need to close and how much you will spend for the money by the time you expect to exit....compare apples to apples.

Barry Ingram, 770 Hard Cash - Private Money Lender

Even without the funding secured, especially if you are doing a Fix & Flip, you can do a contract with just the EMD. Like Mike mentioned, you will need to know how to do you own numbers. If you have the numbers right HML is almost a sure thing.

This is an awesome thread and it's stressful to start reading hoping that the company you are with doesn't have bad boy tendencies and I'm happy to report, we don't show any signs of scamming, LOL!

No Junk Fees, The only pre-payment is appraisal after the loan is approved. Loan approved in 24-48 hours and a good history of closing deals. 

I know it's an old thread, but it's full of the right type of information to help you get real financing and not have the wool pulled over your eyes.

First I want to start by giving credit to @Steve Hall from Jacksonville....his reply in the Houston thread sparked this desire to start this discussion and I incorporated from that post. 

If you want to be successful and have a better chance of getting a response and hence getting the funds you need from a hard money lender. 

I want to suggest some details you should consider having when you make your request.

Must Haves

1. Property Type
2. Purchase Price
3. ARV
4. Cost of Repairs
5. How much cash you have on hand to use in the deal
6. Your credit score
7. How many flips you have done within the last year
8. City and State of property
9. Do you have a contract? If not, give details on why you expect to get the contract

Should Haves

1. Did you physically see the property
2. Do you have partners
3. How was the ARV determined
4. Do you have an appraisal or BPO
5. If it's a rental unit, does it have renters, how close do you live, will you be managing it
6. What is your exit strategy? Fix and Flip...Fix and Hold....BRRRR...etc
7. How were the costs of the repairs determined
8. Do you have the funds to start the project and make it to through the first draw (if the loan is setup that way)

Things that make the lender feel better

1. What is your net worth
2. Will you be the general contractor or will you hire one
3. If your credit score is low, do you have bankruptcies
4. What is the expected time frame to finish the renovations

Remember in hard money lending we feel is a win-win-win, so we want to do the deal to help you get started on your project and help our lenders make money. We want to offer our lenders deals that show that risk is mitigated as much as possible. 

Be sure that you know what fees you are haggling over. If you are going back and forth about high points between two lenders and miss the extra "fees" that might be charged by one, you are missing the point. Know exactly how much you need to close and how much you will spend for the money by the time you expect to exit....compare apples to apples. 

I'm not sure about Texas real estate law, but on our property Virginia we would have to give the deposit back because it was just that, a deposit against any damage/repairs. So we changed and started asking for the first month's rent upfront and pay the deposit when they move in. That way if they cancelled out, the would not have an expectation of getting the money back because it's prepaid rent.

I know in some cases landlords would keep the deposit and force the tenant to take them to court, etc. But I'd not advise that route. 

Either way, I'm not a real estate lawyer, just my 2 cents.

Barry

Steve is right on with the questions that need to be answered. You could definitely start with the ARV and purchase price to wet our whistle.

Barry

Jerry

Can you give some details on why hard money use is better than cash. i have my ideas, but I'd love to hear yours.

Barry

Sounds like a good opportunity, and it definitely seems like Charley's advice is spot on. Hard money lenders by nature are not going to offer rates attractive to something long term.

Barry

Zane

We can do rentals, feel free to PM me.

Barry

It's great to see signs of things headed the right direction.