All Forum Posts by: Justin Todd

@Steven J.

 .. still learning how to tag people, lol.

@Steven Johnson

Thanks for the reply! But the 1st HML actually covered the entire purchase amount. The remaining $14,000 was made up of closing costs, insurance, loan points, and loan interest. Beyond that, the 1st HML knew I would be using a 2nd HML for the remaining amount and didn't seem to have any problem with it.

As far as the temporary housing. Is that just me offering to put the tenant in another apartment/home for the remainder of their lease? Not really familiar with the term.

Hey guys, I'm buying a house with a hard money loan on a 8-month term. There's a tenant in the property with about 9-10 months left on their lease, so I'm a little worried that (if I can't get them to agree to leave upon sale within their time allowed by law) that I may or may not be able to find a buyer that is willing to wait out the lease agreement. If this happens, I'll need to refinance within the 6-8 month window after seasoning to pay back the lender.

What I need to know is: What do lenders typically require for a refinance? My credit score is crap, somewhere around 520. And I don't have a job as of about 30-40 days ago (was only a 6-month gig) to show any kind of proof of income. How does this stuff work on investment properties? I've seen other stuff on BiggerPockets talking about buying with hard money, renting, then refinancing which is pretty much what I would be doing if I can't get the property to sale. I definitely still need some help understanding this, though.

Any help would be GREATLY appreciated!

Thanks so much in advance!

Hey guys, I'm about to make a purchase on a local house. I'm using hard money to buy this property, and they only cover 70% of the purchase, so I'm going to have to cover $14,000 of the purchase out of pocket. Now I don't have $14 grand I can just throw at this thing, but I do know another hard money lender (I know this guy personally from a local REIA, so this isn't a company like the one I'm using to cover the bulk of the purchase price) that will very likely be interested in covering that amount.

My question is: How does the 2nd lender (for the $14k) protect their interest if the property is already being used as collateral for the 1st lender? I mean, I wouldn't even want the property to BE collateral for only $14,000. So I'm not really understanding this from a technical perspective, I guess. How does the 2nd lender assure they'll be repaid? There'll be plenty leftover between the purchase price and sale price to pay both lenders back plus interest, but I'm just not quite understanding where the 2nd lender can rely on being paid back if I'm not able to resell the property within the 1st hard money lender's term (8-months). Just so you know, the only reason I would ever think it might not sell within this time frame is because there's a tenant in it with about 9-10 months left on their lease. So if I can't convince the tenant to move out upon sale of the property (within their allowed time), I would need to find a buyer that is willing to wait out the lease agreement, which I'm honestly not sure if most buyers are or are not willing to do.

Anybody understand or have experience with this sort of thing? Please help!

Thank you very much in advance!