All Forum Posts by: Ryan Stuckey

Quote from @Sole Angel:

Good morning! I haven’t bought my first property just yet, but I was wondering if $35,000 is enough to start buying a small single-family home in North Carolina. I found a lender that will cover the purchase and rehab, but I need to pay the closing cost, which is about 3–5%.

I would be using a DSCR loan since I don't have 2 years of work history.

You are mixing up loan types and I recommend to better understand these types. A purchase and rehab loan is a short-term loan to add value to the property. It's not a DSCR loan.

A DSCR loan is a long-term loan with rent-ready conditions and uses the rental income to cover the expenses, including the loan payments.

Both are asset-based loans, but only one is a DSCR loan (the rental loan).

Longhorn Investments is well known as a leading hard money lender in the US - 15 years and 7500 closed loans worth of experience (and repeat/loyal customers). Now open in select Ohio metro areas. Professional, experienced, trustworthy, investor-friendly.

Offering very rare 100% financing on purchase and rehab costs (up to 75% of ARV).

No experience required - it's all about the deal.

Fast closings - 6-8 business days with all documents provided.

Loyalty program - after three successfully completed deals, pricing reductions are delivered.

More info:

https://www.longhorninvestments.com/

Longhorn Investments - 15 years and 7000+ closed loans on the 100%/100% model. No upfront fees, 6-8 day close like clockwork, plenty of enthusiastic testimonials on the website at longhorninvestments.com.

Caveat: only active in certain geographical areas (metro areas of 10 states)

Do not pay for anything up front, other than the cost of an appraisal once the deal is vetted and moving forward. All other costs/fees will be settled at closing with the title company of your choice.

Quote from @Ryan Davies:

Most work this way: 

• Rates: 9% to 13% (Most Deals are 11-12%)
• Terms: up to 36 Months (Most Deals are 6-12 months)
• Fees: 2-4 points(%) of loan amount paid at closing (Most Deals are 3 points(%))
• Minimum Loan Amount: $50,000 (For loans less than $250,000 we charge $2,500 minimum)
• Max Loan: 65%-70% of After Repair Value(ARV)
• 100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)
• Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 2 Weeks
• We have private lending partners throughout the entire United States that cover the following states: AL, AZ, AR, CA, CO, CT, DE, FL, GA, HI, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, OH, OK, OR, PA, RI, TN, TX, UT, VA, WA, WV, WI, WY.
• NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONL

 Spam

Quote from @Javier Rivera:

I found a property and got approved with a hard money lender, however the closing cost is 29k on a loan for 112k. Is that normal and are there better rates through other hard money lenders. This is my first deal. 

 Are you sure that "closing cost" is not actually "cash to bring to closing"? This can include a down payment which may be 10-20% on a short-term purchase and rehab hard money loan.

(except if you used Longhorn Investments. We have 0% down on purchase available, so our closings at this loan size level would be well under $10k).

Hard money is quite unfairly maligned. It's a tool to be used in the right way, like any tool. Thousands of successful real estate investors have used it the right way to build a lot of wealth. No doubt many have used incorrectly and didn't do so well. Hard money companies are not going to stay in business by causing ruination in their customers. They are built into successful companies only by delivering a valuable service to investors, who come back for more of the valuable service as all parties prosper.

Hi Noah,

Congrats for putting yourself out there but you will need to study some real estate financing topics to understand what is possible out there with this rehab projects, and to much more accurately quote your costs/profits. Conventional on a flip is a non-starter, don't bother. There are several possible ways to do it but if you want to discuss how hard money works, DM me to set up a call. I'm in Ohio and happy to help a new person understand this (and help you avoid costly mistakes)...thanks

Just do Delayed Financing on the purchase. You can typically put this financing in place up to 90 days after a cash purchase. It's the same terms as a normal purchase, just finished after you cash close (to secure the property fast) with a 30-yr term. So you can get 80% of your purchase price back out. It does not work for cash out above a purchase price.

If it's a rehab project, you can get 80-90% out plus 100% of rehab funded, i.e. the typical purchase and rehab loan terms (12-month term).

Quote from @Nick Versetto:

I haven’t taken down a project in a couple years and I used to have a list of lenders begged to finance my projects but now it seems those are much harder to find now.  

If anyone can send me a contact etc I’d appreciate it. 

Thanks 

Longhorn Investments, indeed with 100% on purchase and rehab, is very active in certain metro areas in 10 states (OH, IN, TN, NC, GA, AL, AR, TX, NM, MO) but not IL. Perhaps you could look at nearby states. Out of state investors OK but approval a bit easier with local access (i.e. that means you are resident within 250 miles of the project).
 

Glad to hear your first one went well with Longhorn!

We do like to help first-timers get going - 100% financing on purchase can make all the difference.