All Forum Posts by: Don Gouge

@Jesse Kozazckifirst I think we have to somewhat define the difference in hard money and private money. Hard money lenders are basically loaning out other people's money and profit from points and maybe skin a fee interest points. Private money might come from a family member or friend or business associate or maybe just an individual that is loaning their own money. Usually private money is cheaper. Your mother might loan you a 100% at 2% interest but most will want much more. If your true ARV is 300k then the maximum you can expect to borrow would be around 70% and that covers purchase and repair costs. With no actual experience the max you would probably get is 65%. Lenders want you to have money in the deal because they don't just want you to walk away when things get tough. I am not a lender but if I was about the best terms you would get from me would be 65% ltv, 3 or 4. Points and 12% interest.

The problem you are going to face with hard or private lenders is that you plan to live there. The Dodd/Frank law will not allow a non licensed mortgage originator to loan to a homeowner.

@Jason James I have not really had any bad experiences. I always do my due diligence before I make my offer. I have been a contractor for 25 years so I feel pretty safe in evaluating what I see. I always base my offer on some hidden expenses because they will always be there. Being a cash buyer with no contingencies and a large earnest money deposit, proof of funds and a quick closing always puts you at the top of the list.

Give notice.

Savvy sellers know that an inspection contingency is often a tactic used by buyers to lock up a property and really begin negotiating the price after the property is off the market. An offer with a no inspection contingency tells me that the buyer is strong, capable and will close at the contract price. All my offers have been made without inspection contingencies.

Any time you supply any appliance you are responsible for it.

Why do you want to buy this property? What is the upside? 

If you aren't willing to fix the problem properly pass on the property.

Have one crew do exterior while the other does interior. Making the kitchen and baths fresh, clean and updated is mandatory in my book.

if $4000 wrecks your deal it wasn't a good deal to start with.