All Forum Posts by: Kerry Boyle

 Great! Hope I made the list :)

Our Foreclosure Sale Financing program offers financing for properties even if we cannot get interior access prior to funding. Good for auctions and sheriff's sales.

Max LTV is 65% of purchase price and we give a first rehab draw on the settlement statement dependent on your experience (5-15% of purchase). If you can gain interior access for the appraiser, we go up to 85%.

Financing for purchase: MD, NC, NY, VA, NJ

Refinancing right after purchase: CO, CT, DC, FL, GA, IL, LA, MA, MI, NJ, OH, PA, TX, WA

Rates: 10-12%

Points 2-3%

Term: 6-24 months. 

@Born R.

I do plenty of business in Michigan. I am a direct lender, so you don't have to pay any broker fees. We qualify you based on assets in the bank and credit score and we ensure you will have a profitable deal with our construction manager's review. 

I'm open to help you analyze the deals you get as well, provide proof of funds letters, etc. This is HML though, so if you can finance with VA or conventional loans, it probably isn't the right house.

@Daniel Souliotis This is correct. 

If you can fund the full purchase, I can get you your cash back out same day if the title company will issue a title policy for us. 

From Step 1: Put 10% down, go through loan application & underwriting with a lender that does this type of thing.

Step 2: If you can get an interior appraisal, you can get 75% of the as-is value. Otherwise, a roadside BPO gets you 65% of the purchase price.

Step 3: After underwriting we give you conditional approval letter, start scheduling closing for same date as your first closing (or, if title wouldn't issue a policy, as soon as deed is recorded in your name).

Step 4: You pay cash to close on your auction/sheriff sale.

Step 5: You get cash out plus rehab funds same day (if title will issue a policy). 

Step 6: Complete your rehab!

I am in Allentown next week Tuesday-Thursday. Give me a ring if you want to schedule a time to meet up.

I don't care if you use a LOC to pay the down payment. I do want to see the two most recent statements and a copy of the note. Typically, I like to see some amount of money in your checking/savings as well, but it isn't always necessary. So, at least this hard money lender isn't the same.

In regards to a HML, just talk to a few. If you feel nervous after talking to a HML, then they probably aren't the right fit anyway. I vet the deal as much on the front as possible so you know exactly what my expectations are.

That being said, HMLs typically only work with value-add scenarios anyway - otherwise you are in the same scenario when you need to refi out.

 Do your homework, but don't get stuck in analysis paralysis. 

Your HML should be providing a lot more information to you to help your analysis. Reach out to me if you want help with the anaylsis part.

Good luck!

 I recommend calling them, discussing a lot of the questions asked above and see who clicks the best.

Some lenders may require tax returns, some may have higher asset requirements, if it doesn't jive with you move on. Most lenders are busy enough that you can do just that.

Hey Daniel,

Your hard money lender should also be funding rehab costs. Our minimums are 75k also, but on deals where it is close, you just increase your rehab contingency by several thousand dollars. I.e. 75k purchase 15k Rehab and 135k ARV; Let's say we did 75% of purchase and all the rehab - BUT that only gives us $71,250. Your ARV protects the added rehab contingency, so you can add $3,750 to your rehab budget as contingency.

Also - that 3k down payment is actually 3k to join their program (I believe some portion gets credited back to you - but I don't know and I don't work for them). They may still have a down payment requirement at closing. They are a legit company though.

Hey Daniel,

How does hard money loan exchange hands? - With a title company, an executed contract for the purchase and sale of real estate, and on the scheduled day of closing. That is simultaneously when everything is exchanged and managed by the title company.

 they won't send a deed till 20 days after receiving full payment - If an individual is offering this to you, it is a red flag. You must go through a title company and have an executed contract.

how does the lender secure their loan - Almost all hard money lenders secure their loan with a 1st lien on the property.  

If I need the cash 20 days b4 I get the deed? - If it takes 20 days to get the deed recorded with the county, that is a different thing. Title company should file with county within 3 days of the closing.

How do they know the value of the property to determine LTV let alone LTV after rehab? - Most lenders hire appraisal companies to have an appraiser give an accurate LTV and ARV based on construction plans and a walkthrough.

I called a company and they said I have to buy the property first and then refinance it with them. - Sounds like they don't do hard money then. Most hard money lenders are the opposite. They fund purchases, but not refinances. Mine does both.

If I have funds to buy the property why do I need a hard money loan? - Good question. Why do you? Are you looking for leverage to expand to more properties? Do you feel more comfortable in with seasoned professionals confirming what you are doing will end in profit to you? There are many reasons to use hard money, but if you don't have one, then you shouldn't use it. Using all cash is going to increase your overall profit, but at the cost of cash-on-cash return being much lower.