All Forum Posts by: Jeffrey Hayes

Can anyone answer this question regarding timeline of hard money loans?  I don't quite understand the timeline of hard money loans?  

I find a house.

I get an accepted offer

I contact the hard money lender

I guess what I'm asking for is  a timeline using hard money from time of accepted offer to closing?  How does it all fit together?  Specifically in Arizona if anyone is familiar with Arizona Real Estate Laws.

My other question is I'm still confused as far as whether or not I call it a CASH OFFER on the purchase contract since hard money lenders say that they can get you the money within 24 hours sometimes?  At what point does the money come in from the hard money lender i.e  does the hard money lender send that money right to the title company right away?  Who holds the money?

Bill,  very good point!

Giovanni, I'm a real estate investor/broker in Arizona and I've done many evaluations on properties in AZ. Even though I know the Tucson, Az market very well as well as some other parts of southern Arizona I can tell you that real estate values vary greatly from not only one city to another but even from one block to another. So I wouldn't be that big of a help to you for that property. A great example of this would be in Hollywood, Ca where you can have mansions worth millions and much lesser priced homes within a fairly close proximity. If you don't know how to pull comps for that neighborhorhood/subdivision at the address you mentioned , then I would strongly suggest you contact a real estate agent in that town and see if they will run a CMA(comparative market analysis) on that home for you. Depending on how busy they are they may or might not do that for you. Especially if they aren't working for you. It's worth a try though.

The most simple way to expain how to find a value for a home is always try and stay in the same subdivision of the subject if that home is located in a subdivision.  If it is unsubdivided then it is trickier.  Go back 6 months and look at what has sold there for homes that are plus or minus 20% g.l.a, and plus or minus 20 years in age of the subject if possible.  Of course there is alot more too it than just that but it will give you a rough idea of value doing it that way.  You also want to look at lot size and bedroom/bath count and also condition is obviously very important.

However, if you are thinking about buying the home you need to get a real estate professional to help you calcuate ARV not just a rough estimate. By the way Zillow is typically not very accurate. I would never rely on Zillow to determine ARV in case you were thinking about doing that. I hope this helps. Jeff

Marcus,  great article,   I just read it.  I guess the confusing part for me is that a hard money lender from Phoenix told me she could fund the deal for a flip in as little as a few days assuming that the numbers worked for her and that essentially I could treat is as a cash deal even though it's being financed.  One more note of interest is that one of the speakers at the  house flipping conference who has supposedly flipped thousands of homes said that he uses hard money all the time along with any other methods available in order to finance his flips(even though he has plenty of his own cash!)   Some people on this forum think that hard money should used as a last resort although apparently this house flipping guru didn't think that was the case.  What is your view on this?   

Ken and Bill,  Thanks for the good advice.  I appreciate it.

Hi,  I'm flipping homes now and was just wondering if anyone who has any experience with hard money loans could give me a brief overview of the process as far as whether or not you need to get pre-qualified with a hard money lender before you find your flip.  Does it take a long time to get pre-qualified if you need to before you can get pre-qualified?

I'm shopping for some hard money lenders right now and I know that some don't even do a credit check.  Are you supposed to have a detailed sheet of comps/repair costs to show the lender before you apply for the hard money loan?  I just wondering about the funding process for hard money loans as well.  Any info would be appreciated.  Thanks,  Jeff

Hi, I'm looking to network with wholesalers in the Tucson, Az to acquire homes in Tucson, Az area to fix and flip. If there are any interested wholesalers please contact me. [email protected] Thanks, Jeffrey Hayes Hayes Realty LLC

Hi,  my question that I'm throwing out there is that I'm fairly new to bigger pockets and I know that the Rental Properties Calculator is designed to analyze homes that you would like to buy and hold/rent out.  I'm using it on a rental home that I already own but I'm not sure if it was designed for this as the amount of interest I'm paying now on a 15 year conventional loan will be different at this point then when it was in 2008 when I refinanced. Will the cash flow projection still be accurate or what do I need to do to make sure the numbers are correct?  Thanks,  Jeffrey Hayes

Jonathan, thanks for getting back to me. In the next few weeks or so I will be contacting you again for your terms/rates. Thanks, Jeffrey Hayes Hayes Realty LLC

Hi, I'm a real estate broker in Tucson, Az and I'm just getting ready to buy my first flip. I'm looking for reputable wholesalers in the Tucson, Az area. Please let me know if you are a wholesaler who is interested in working with me and would like to include me on your list of people looking to buy homes from you. I anticipate doing a large volume of flips hopefully within the next year or so. Thanks, Jeffrey Hayes 520-548-4595