All Forum Posts by: Kanwar Sodhi

@Kanwar Sodhi  well that's nice to hear that DHM is being up front about how stringent they are on their underwriting..

Lenders require down payments ( other than DHM)

and the terms are 2 to 3 points these days.. and 10 to 12%  for new investors and can be as high as 14%

many won't touch someone doing their first deal.. first deal many times has to be friends and family to get it done. or you need more equity.

most will require at least 10% of actual cash regardless of LTV or ARV.

with 20% being more common.

and for very experienced flippers the bigger lenders are at 1 and 8 or there abouts.

bank loans that I get and these are full doc full tax return personal guarantee that mean something etc.. its 1 and 5.5 to 6.5 % that's the best you can do.

so go find that money partner.. then go shop

here are some that I know are for real and don't charge up front. other than appraisal..

1. lendinghome  ( they do charge 199 submission fee but they are FOR REAL) I have borrowed a few million from them.

2. Lima one same thing they are for real I am closing a new construction with them on Friday in Charleston .. not greatest terms but pretty darn good for HML

3. lendingone  for real

4. visiio  for real out of Austin TX   they take out a lot of my loans IE my clients refi me out using them.

and I am sure there are plenty more east coast based that I am just not familiar with.

@Debbie Farrell  Do hard money niche is the 100% financing of purchase and rehab..

So from what I have gleaned on BP and in my expeirnce in the space.

they will attract the new investor who is generally wanting desperately to break into the game but is limited on cash other wise they would go to any number of HML that have far better rates and terms than what I have seen talked about on BP about this company. Not to mention most only charge for apprasials.

the issues others have brought up is the 3,000 is non refundable if you never bring them a deal that meets THEIR underwriting criteria.. and of course simple logic would dictate that since its a new investor generally speaking  they are going to have the hardest time finding smoking deals which at the end of the day if I was DHM I would do the exact same thing.. except I would not be charging for turn downs like they do..

there are have been others on BP that paid the 3k PLUS 650 a submission only to have 2 or 3 turned down and never did get funded and now they are out 4 to 5k.. then others who have lost EM.

But there have been some on BP that said they got funded but then whinned about the draw process.

IE DHM ( according to them) required the borrower to front draw money and DHM would reimburse.. this caused all sorts of problems for the no money down flipper.. as you know they are on a tight budget.

then lastly the rates were not clearly described and from what I could glean these guys were 4 to 6 points and 15 to 18% interest and in the flipping world you know who is going to make money on those deals and its generally not the borrower.. LOL..

now I am sure there are some that have worked and these guys must fund enough to not get shut down.

But in principal getting 3k out of people and they cant get a deal done that is what gives most experienced folks in the industry pause.

We could help, we never require our clients to pay for anything but appraisals up front, i would love to discuss more in detail with you .