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All Forum Posts by: Kerry Boyle

Kerry Boyle has started 22 posts and replied 265 times.

Post: Using an equity partner for down payments for Hard Money Loans

Kerry Boyle
Lender
Posted
  • Lender
  • Bethesda MD
  • Posts 283
  • Votes 123

Hi @Rashawn Stevens!

In my experience, a HML may allow equity partner funds for a down payment, cash-to-close, and loan reserves and also may allow gift funds.

Also some may allow up to a certain percentage of IRA, 401k and other retirement money as well as marketable securities.

These are all ways you may be able to get "skin in the game" money.

Post: Attorney for Hard Money lending in NJ

Kerry Boyle
Lender
Posted
  • Lender
  • Bethesda MD
  • Posts 283
  • Votes 123

What do you mean by a hard money lending attorney? Are you looking for legal advice so you can start lending hard money? 

Post: Quitting day job and need funds

Kerry Boyle
Lender
Posted
  • Lender
  • Bethesda MD
  • Posts 283
  • Votes 123

Hard money, at least in my side of the court, will not require any tax returns, income verification, or DTI restrictions. They will ensure that you have enough money in the bank to make the interest payments and money to close (2 months bank statements). If you have equity from your first flip, many lenders would be able to use that to cross-collateralize and it may mean you only have to bring 10% to the table.

Feel free to connect and ask me anything!

Post: I have 200k in actual cash not hardmoney. How would you invest it

Kerry Boyle
Lender
Posted
  • Lender
  • Bethesda MD
  • Posts 283
  • Votes 123

I would take your experience that you have in your area and apply it on one property where you think you will make the most money. Trying to use less than 50% of your actual cash to buy a distressed property AND rehab it. Give yourself a 6 month time limit to complete the project and get the property rented. Bonus for completing early. Document everything and look at what your total return is as a percentage. 

Measure your success, and if you make more money than you would spend using a hard money lender (i.e. you had a 16% return and hard money would cost less than 8%) - then leverage the hell out of your money and make more than you would have with cash.

Post: Cash-out Refi in Charlotte?

Kerry Boyle
Lender
Posted
  • Lender
  • Bethesda MD
  • Posts 283
  • Votes 123

@Stephanie P. is absolutely right. As a hard money lender, I can say that there are plenty of "non-agency" lenders that will not have any seasoning requirements if you look hard enough, which would be at the cost of a couple points and usually a pre-payment penalty and get at most 75% out.

Assuming this scenario: You have a 133.3k property and you want to take cash-out to fund an opportunity that you just found and won't be on the market for long.

Appraises for 133.3k, you have great credit and can get 100k out. This will cost you (averaging to 3 points up front and a 12% interest for a minimum of four months on a 6 month term) 7% of the refi or 7k in this scenario. Throw the cost into your calculations and see if you will still be ahead if you did buy the new property!

There are definitely cases where it make sense to lose 7% to gain more on another project, just do some math!

Post: Fix & Flip Hard Money lender credit check, tax returns, app fee?

Kerry Boyle
Lender
Posted
  • Lender
  • Bethesda MD
  • Posts 283
  • Votes 123

As a hard money lender, we don't require tax returns, income verification (except in very unique circumstances). We do require 10% down minimum and do have an underwriting fee, but it is charged after pre-approval is issued and the appraisal is accepted. 7% is a great rate though (our min is 9%) so it seems like they are requiring tighter underwriting which allows them to cut a few percentages off.

@George Taylor makes a good point, as you usually will pay less going directly to a lender (for the future).

Post: BRRR loan easier to get with all-cash purchase?

Kerry Boyle
Lender
Posted
  • Lender
  • Bethesda MD
  • Posts 283
  • Votes 123

As a hard money lender with no seasoning requirements, you can finance the acquisition with us (or another lender) and cash-out refi as soon as the project completes for the new value up to 75%. Works the same way if you had paid cash originally. This requires non-owner occupied and in an LLC.

Connect and PM if you would like more details.

Post: BRRRR strategy Refinancing question

Kerry Boyle
Lender
Posted
  • Lender
  • Bethesda MD
  • Posts 283
  • Votes 123

As a hard money lender that doesn't have any seasoning requirements, we would do 75k cash-out maximum on this property - that is if the appraisal comes back after repairs of 100k.

You can pay points and all closing costs with the cash-out you get (only up-front fee is you paying for the appraisal).

In a different scenario where you took a loan out - it actually doesn't change anything. If in April you acquired a property for 100k with a 60k loan and 30k repairs with an ARV of 200k. As soon as the repairs are complete you can get up to 150k cash out if the appraisal hit the ARV value.

These are short-term loans, but allow you to get your profit out before you hit any seasoning requirements for long term refi products. Connect and let me know if questions.

Post: BRRRR "Seasoning Period"

Kerry Boyle
Lender
Posted
  • Lender
  • Bethesda MD
  • Posts 283
  • Votes 123

Not all lenders require seasoning periods and the way you purchase it doesn't change what requirements they have. We provide cash-out short term loans based on the updated appraisal price so you can use your money somewhere else.

Post: HML or NOO Financing w/cash out in IL

Kerry Boyle
Lender
Posted
  • Lender
  • Bethesda MD
  • Posts 283
  • Votes 123

Please PM me or send me an email so that I can compete. 13% is almost our max and your credit score is a beautiful thing. If you already have a completed application we can use that to give you a pre qualification letter with our rates.