All Forum Posts by: Ryan Blake

@Jimmy Suszynski Most HMLs will want to lend in the name of an entity. This is because 1) it is easier/cheaper/faster to foreclose on a business than it is on an individual and 2) HMLs are not allowed to lend to owner occupied homes. An entity can't owner occupy a home. This protects the lender from slipping into the Dodd Frank banking regulations.

@Kristie S. You probably didn't have an issue with borrowing in your personal name because you were investing in Texas. The state treats real estate investments similar if they are in an LLC or not. Texas also is a quick foreclosure state. The process is easy so lenders are willing to let the borrower choose how they want to hold the property and loan.

Hope this helps clear some of the confusion. In review, different states have different rules. In Texas, we can foreclose within just 4 weeks. In New Jersey, I can take up to 2 years. This will define how you are able to hold the property and the rates you are receiving.

@Bishara M. I would look into Little Elm, Prosper, and possibly the east part of Farmer's Branch. They all have lower prop tax but Not sure if you will find many duplex's to house hack in those areas.

@Kai Kopsch is right on with using rentometer. Best way for you to get an idea without looking directly at the MLS (which even then may not be as acturate). Other options are to ask a property management company like @Jon Shoop. That could be your best bet if you are willing to bring someone on board to help.

Good luck @Gustavo Juarez

@Andrew Postell is the man to talk to.

Guaranteed Rate Mortgage will help you out with a great product.

@Nick Pauze There are a ton of meet up groups all across DFW. I tend to stick more on the Tarrant County side. These are the ones that I go to:

IMPACT Grapevine - https://www.meetup.com/DFW-REI-Network-Investing-Meetup/ - Started in Bigger Pockets this group meets on the 3rd Monday of each month. Just straight information and super friendly atmosphere. Great speakers that won’t try and sell you on a program. Meets at the Dave and Busters in Euless. Free dinner provided.

IMPACT HEB - https://www.meetup.com/realestate-427/ - This is a newer group and has a power couple who lead it. They invest all over DFW and offer mentoring on top of the monthly informational meetings.

West DFWREI - https://www.meetup.com/West-DFW-REI-Group/ - This is a smaller group but provides tons of information. The leader is a pro at sub-to deals and is very giving of his time to help out new investors who are serious. The group meets 1st Saturday of each month in the Southwest Fort Worth area. There is also 1 or 2 other meetings throughout the month.

1RE Club - https://www.meetup.com/1REClub/ - This group is led by a former Rich Dad coach who has been investing in DFW since the 1980’s. Super knowledgeable and takes integrity and his Christian faith into all the deals he does. He also offers coaching where you joint venture on deals. This meeting is the 2nd Thursday of each month at the Fort Worth Botanic Gardens meeting rooms.

Texas Tuesdays Mastermind - https://www.facebook.com/events/the-sogio-building/texas-tuesday-fort-worth-real-estate-mastermind/1830836547025917/ - meets 1st Tuesday of each month and is completely free. Has info from a variety of professionals with no sales pitch other than the opportunity to go to a full day workshop with the same speaker. The full day work shops have a charge but 100% of the fee for the workshop goes to support a kids cancer fund. Free food and free adult beverages. 50+ in attendance. Meet in North Fort Worth.

Texas Investors Club - https://texasinvestorsclub.com/ - meets the 3nd Tuesday of each month and is completely free. This group is big. Like 80+ in monthly attendance. There is free food but show up early if you want to get some. There is a cash bar but you get one drink ticket if you pre-register. The event is completely free.

AREA Real Estate Investing Group – https://www.meetup.com/realestate-445/ - Smaller group that meets once a month. Free to attend.

@Basit Siddiqi

EXACTLY!!!!

I also found out he tried to put down the company I work for. I tried PMing him just to ask where he got that info but his account is inactive.

Just since it was put out there I feel the need to defend Longhorn and hope it doesn't get removed. We have a 5 star rating with Google Review after 60 reviews and an A+ rating with BBB. Not promoting here, just trying to find out where the Richard Berg was coming from when he attached me just for saying to not pay an HML any fees before closing, especially not $2,000+.

EVERYONE: Please utilize your local meet ups, word of mouth, and the Bigger Pockets lender list to find quality and vetted lenders.

Robert last comment.. I have some pretty good back ground in HML and although inactive hold a NMLS license.. which is required in 12 states along with state specific licenses to do loans on 1 to 4 unit non owner occ or owner occ.. I know many lenders who come from states that are the 38 or so that require no license get caught up in this and will get cease and desist and the bigger HML if you do check their website you will note NMLS and state license were required Lima one is not going to pay you in a state that requires a license I know that. .. so when U state you loan in 48 states.. and when one checks NM LS and you are not licensed that is telling.. I get the broker stuff I do.. I have a real estate license but don't really use it.. But have owned 2 HML companies over the years where we loaned our own money no brokering.

Unfortunately the pump and dump advance schemes are a live and well right now.. again not saying you don't actually close stuff.. But i just had a client in Seattle send 6k to a fake lender he found on Bp and he lost it..  And of course if you follow Do Hard Money they require 3k up front and some get on BP and say they can never get funded as the deals are not good enough.. Which i get it. 100% financing has to be rock solid.. but those investors who try this stuff usually have to put the advance fee on a credit card then are further in the hole.. or like this guy who was risking your fee and 15K in EM..  when in Fact you have zero control over the funding your relying on a third party.

Bottom line its like flying a small plane you just dont know what you dont know until your in the middle of a crisis.. LOL.. I know I flew small planes for 30 years. 

So if your lending in 48 states and actually closing loans in that many states and taking compensation in the ones that require licenses,   for instance

Oregon California Nevada one of the Dakotas  Tennessee etc.. then your not doing it within the guide lines of the law.. With Nevada being one the prickliest ones..

And for sure Borrowers withhold info ALL the time that is just a given.

Thank you for the post and clear advice on running HMLs you have been the king of giving out info and I thank you for that. Awhile back, about a year ago, you even corrected me and gave me some advice on things. Appreciate your input on these forums. I think @richard berg is no longer a member as we can't tag him in the posts (not a good sign) but he was worried we were all saying bad things on his company. Some people were but you and I were just cautioning on the huge risk of paying large up front non refundable fees. There are too many companies that make there money off just those. It is sad when there are a majority of lenders that will require no fees. We weren't saying his company is a scam because like you said they may close many deals but it is just very suspect when on a fix and flip loan you are charging $2k or $4k as in @Moses Jean's case. That is normally only for large deals at $2m+. Hope people see these posts and use a lot of discretion.

And I never could figure out where Xpress Loans was located. No address on their website and no google reviews.

@Account Closed in short you are a broker with $30m in experience (per your borrower above). You charge a large non-refundable commitment fee. I merely am saying, 90% of hard money lenders will not charge this fee.

To all who are looking to fund a deal, if you are fine putting up a large commitment fee, please use Xpress Loans. They may be a great fit for you. If you are worried about large non-refundable upfront fees, please visit the Bigger Pockets list of lenders and ask for references and term sheets from recent closings. There are plenty of lenders out there, go with ones in your specific market who you have received referrals for.
Location and being a direct lender matters.

@Moses Jean I am curious about your experience.

It is just very odd that we are now getting 3 posters who have a favorable opinions of the company but are all brand new users to the site. Doesn't mean they aren't true but it is just very strange that ALL the positive comments right now are from brand new accounts.

No one is staying that it is a scam for sure but it is fishy to request commitment fees on small loans like the poster who said they requested $2,900 on a $100k loan. That is NOT normal. Doesn't meant it is a bad company but they are not doing common lending practices. Just strange.

@Brady Shipley It is a fun job to flip. You get to exercise creativity, financial analysis and negotiation/sales skills all on the same project. I love it and have done it now for over 11 years. Just vet your lender and agent well. They are not all equal.