All Forum Posts by: Hoa Nguyen

@Chris Seveney

Downpayment. My HM lender does 0-5% down depending on deal. Vs 20% upfront

Was curious about the process and possibility of securing a rental via a hard money loan and refinancing out of it within a month. My go-to HM lender has approved to finance a purchase that needs some minimal work, like a month or less worth of work. Is this a common practice or are there rules against doing so? I am not approved to buy outright with a conventional loan, but by going HM first and then refinancing seems like a solid workaround. 

This may be a simple question, but have yet to find a clear answer. 

Got approved for an HM Loan, and it mentions that the construction portion of the funding will be held and construction draw requests will be sent accordingly. What exactly does this process look like? Do I complete work out of pocket and send invoices for reimbursement? Sorry first time going this route. 

Just got denied lending from a supposed HM lender due to the source of the down payment coming from a personal loan. I understand the risks, regarding the method of using a loan to get a loan, but was told that Hard Money will overlook that if the deal lines up. I've run dozens of calculations on this flip deal. When it closes not only will I be able to pay the HM loan off but I would also plan to pay the personal loan off and still walk away with a decent profit. Should I explore other hard money options or is this a roadblock Ill continue to face?

Got some numbers from a hard money lender who had me itemize and budget me reno. Playing it safe, I over estimated some cost to get to the allocated budget. Question is, when the time comes and I finish work, what happens if I do so under the rehab budget? What happens to the funds? Do they go back to the loan balance? Can I pay myself as a contractor? Just trying to grasp the process here.

Nice to meet you! As a long-time BP member and mid-level investor, the best advice I can tell you is to ask questions on this platform. Even simple ones. This community is great and is on top of helping investors regardless of their experience. 

A property manager is a great resource for all the above and more. Sure everyone likes to save money by doing so yourself, but eventually, you would want to scale your business to the point where you can hire a PM to do that work for you. 

Now if you absolutely want to do it yourself, (may get hate for it) I have actually found Zillow rental manager to be a pretty decent way to solo manage your properties and collect rent.

Just wanted to get a grasp of what criteria Hard Money Lenders look at when qualifying someone for a loan. I know experience is a big factor, but what about DTI? Credit? and any other needs I need to prep for when going this route.

I recently discussed with a fellow investor who claims he is getting his hard money loans secured for only 10% down. Everywhere I have looked has always been 20% minimum. I didn't dive too much into who he uses as the conversation was brief. Has anyone else done a deal with hard money with only 10% down? If so do you mind sharing who you used? That would be a game changer for future deals for me. 

(spare me the "hard money is dangerous" advice") 

 This would be a flip, but if push came to shove, refinance and attempt to list on market during peak sale season in my area. I can also hold and rent, but not a crazy amount of cashflow