All Forum Posts by: Demarco Brown

Please join us for an informal meetup to discuss real estate investing.  For newbies and experienced invest

Hey Ryan i would like to join your next meet up for investors. I am a newbie and would love to network with current investors in the Tulsa Market. 

Hi @Demarco Brown, for the initial loan, it is certainly an option. For a long-term loan, you should refinance into a DSCR or a conventional loan for a lower rate and get your capital back.

You can also look at non-QM fix and flip loans by licensed companies and loan officers.

Hope this helps! Let me know if I can be of any assistance.

Hey Demarco , I do think HML is perfectly fine. Find some apps or online calculators and compare your monthly payment on a traditional lender at let's say 5.5% - with full PITI included - and then compare it to interest only at let's say 12%. Now, multiple the difference by 5.

If you have a typical project you will easily take 5 months to exit. If you’re a rockstar and manage well you might be able to do it in 3 but let’s stick with 5… the difference is going to approximately be a few thousand dollars… 

here’s what I’m getting at. Using hard money is higher interest. It’s a cost to calculate. Just like factoring in HVAC or roof. 

However, without it, you are likely facing the worst expense of them all: opportunity cost. 

Hey Demarco,

Id be happy to look at numbers for you. Im a hard money lender in Austin. 

Ill send you a DM. 

Like anything else, depends on the numbers. If you can make the number work with the hard money loan then go for it! but be sure to understand the terms, ie. repayment of most hard money loans is usually required within 6-12 months so you will need to be sure you can refinance within the alloted timeframe.