All Forum Posts by: Hans Restuccia

Welcome! Glad to have you!! Let me know if I can be of assistance in any way. (I am new to BP too- smile)

Adam Steinebach

On your question- "Do most HML's loan on equity based on the home's current condition or is the ARV taken into account?"

I would think that it is based on current condition- then give construction draws as progress is made.

Welcome! Glad to have you!! Let me know if I can be of assistance in any way. (I am new to BP too- smile)

Sorry- can you elaborate on the part:

"With that in mind, I was thinking, "would a hard money lender loan to someone the cost of the house + the down payment for refinance?"

I do not understand fully.

I have found it extremely difficult to find HML for vacant land- what is your experience.

OK thanks much.

J Scott in your scenario- the lender is giving $50k at closing which is 100% of PP. I am suprised- but must trust borrower.

Jon Klaus

Thanks- Let me see if I understand how this is being done:

ARV= After repair value = say $100,000.00- when all work complete

LTC= Loan To Cost = $_____________ How much you get and when

LTV- Loan to Value= so you get 60% of the $100,000.00 and that is total loan???

How much do you get at closing and do you get draws against the total amount of the loan to be disbursed?

By the way, I would like to see comments how this is being done in your area.

Thanks for your help on this.

Jon Klaus

Thanks for reply- LTC? I am not familiar with that term??? Loan to Close?

J Scott- so do they determine ARV, (After Repair Value) and lend up to 70% of that amount up front? Even before the repairs are made?

Or do they hold some of that back and give draws as progress is made?

Also 10/0 is great money- you would not find that in South Fla.

Thanks for the reply sir.

Corey Dutton

Cory, I could not agree more w/ your original post.

We find that we cannot meet the requirements of Fed. RESPA on a primary residence, consumer loan, so we only lend to investors on investment property-

Therefore, if an individual owns his house free and clear worth $500K and it is his primary and he has bad credit and cannot get a loan from the bank, and he is a sophisticated business man, and he wants to borrow just $50,000.00- we cannot lend to him because of the Dodd/Frank act. (By the way, there are legal exceptions- that is another story and difficult to navigate),

Now not only does that inhibit a growing and vibrant economy but for this to happen as a result of a law to "supposedly" protect the consumer is absurd!!!