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Author Topic: Hard money for rehabbing?  (Read 8696 times)

Offline zells79

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Hard money for rehabbing?
« on: February 10, 2005, 10:05:12 am »
I have found a rehab project in Dallas.  I am "pre-approved" for a hard money loan through a company called Investwell.  I'm wondering if anyone has ever used them before, or if anyone has a good HML to recommend?  I'm a little nervous about using a lender that I don't know anything about.  Investwell is not listed with the Better Business Bureau so I don't know how to see if there are any consumer complaints against them.  Any advice for a first time rehabber?

Offline BB

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Re:Hard money for rehabbing?
« Reply #1 on: February 20, 2005, 09:57:33 am »
Is this your 1st deal? I'm looking for an HML to lend to me on a first time deal? I've heard alot of them don't like 1st timers-they like experience.  Sorry to address your question with a question.

Offline DHLC

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Re:Hard money for rehabbing?
« Reply #2 on: February 20, 2005, 11:39:59 am »
Investwell used to be called by the names of 3 former subsidiaries - Capital Reserve, Ready Mortgage and Wonderfunding.  If you ask the same question on the local Dallas boards such as AIREO.com you may have better luck finding the answers you seek.

Good Luck
Rob
« Last Edit: February 20, 2005, 02:32:29 pm by TRandle »
DHLC Investments, Inc., Direct Hard Money Lender
Serving D/FW, Austin & San Antonio Texas
972-467-6547
972-759-9790 fax
http://www.dhlc.com

Offline Mortgages

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Re:Hard money for rehabbing?
« Reply #3 on: February 22, 2005, 06:34:07 am »
do they lend anywhere or just acouple of states?
Provider Of 100% Investor Financing
Renovation and Rehabilitation Loans
888-418-8359 ext 902
[email protected]

Offline zells79

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Re:Hard money for rehabbing?
« Reply #4 on: February 22, 2005, 06:48:53 am »
Here's what I know so far.............they will lend in 27 states.  They will lend up to 65% of the ARV to first time rehabbers like me and you if you have a 580 credit score.  They will lend up to 70% of the ARV after you have successfully completed 3 projects.  My problem has been finding a project at 65% in a neighborhood where I'm not scared to show up with my kids  :)  They have given me a "pre-approval" letter to make an offer on a house, I'm just looking for the right deal.  
« Last Edit: November 17, 2005, 04:48:59 pm by TRandle »

Offline Eleni_Funds4You

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Re:Hard money for rehabbing?
« Reply #5 on: February 23, 2005, 07:07:00 pm »
Do they ask you for upfront fee? Have you talked  with them over the phone. I am trying to remember if I have talked to anybody from this company.
Eleni

Offline Mortgages

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Re:Hard money for rehabbing?
« Reply #6 on: February 24, 2005, 06:25:15 am »
Distressed properties are not only in the bad neighborhoods.  A lot of white collar folk living beyond their means trying to keep up with the jones's.  Look at the foreclosure market.  The refi boom was 2-3 years ago and a lot of monkeys got "more house" with option arms and arm's with extremley low rates. These loans are getting costly and i believe that over the next 1-2years we are going to see a lot more foreclosure steals.  As for now you need to work the math but hard money is a tool not a long term solution. As for using hard money for rehabbing i have a 2 step program that i have been using with great success and no money out of my pocket.  
« Last Edit: February 25, 2005, 03:18:29 pm by TRandle »
Provider Of 100% Investor Financing
Renovation and Rehabilitation Loans
888-418-8359 ext 902
[email protected]

Offline DHLC

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Re:Hard money for rehabbing?
« Reply #7 on: February 24, 2005, 08:08:28 am »
What is your 2 step solution?
« Last Edit: February 24, 2005, 08:10:22 am by DHLC »
DHLC Investments, Inc., Direct Hard Money Lender
Serving D/FW, Austin & San Antonio Texas
972-467-6547
972-759-9790 fax
http://www.dhlc.com

Offline Mr.fancypants

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Re:Hard money for rehabbing?
« Reply #8 on: February 24, 2005, 10:37:32 am »
Zelll,

A while back I talked with William Lowe of Investwell. He's the senior loan officer. He said that they require the rehabber to pay for repairs upfront and that they will reimburse you later. I didn't like that idea, so I decided not to do business with them. If you're just starting out and don't have 10-20k to spend, you might want to find a lender that will escrow your repair money at closing.
Work smarter, not harder!!!

Offline DHLC

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Re:Hard money for rehabbing?
« Reply #9 on: February 24, 2005, 07:18:47 pm »
Zelll,

A while back I talked with William Lowe of Investwell. He's the senior loan officer. He said that they require the rehabber to pay for repairs upfront and that they will reimburse you later. I didn't like that idea, so I decided not to do business with them. If you're just starting out and don't have 10-20k to spend, you might want to find a lender that will escrow your repair money at closing.

Escrowing your rehab $ at closing and being reimbursed as the work is done is the same thing.  Why on earth would any smart lender give you the rehab $ at closing, which they are loaning you to enhance the value of the property therefore protecting the loan which was made based on certain repairs you needed to make, when you could easily take the rehab $, go buy a new car, default on the loan and leave them with a house worth less they you borrowred?  

We HMLs are not that crazy.  If you think folks have not tried that, think again.  Look for a HML that will let you work with an approved GC that will accept payment from the HML as the work is done.  Thus saving you the out-of-pocket expense.

Rob

DHLC Investments, Inc., Direct Hard Money Lender
Serving D/FW, Austin & San Antonio Texas
972-467-6547
972-759-9790 fax
http://www.dhlc.com

Offline BB

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Re:Hard money for rehabbing?
« Reply #10 on: February 24, 2005, 09:10:34 pm »
There are lenders out there that will do it (and at no extra cost).  They aren't that hard to find either.

Offline DHLC

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Re:Hard money for rehabbing?
« Reply #11 on: February 24, 2005, 11:27:20 pm »
Really!  Do tell.  I can't get that type of loan myself.  Remember this is for  Investor Property .
DHLC Investments, Inc., Direct Hard Money Lender
Serving D/FW, Austin & San Antonio Texas
972-467-6547
972-759-9790 fax
http://www.dhlc.com

Offline Mr.fancypants

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Re:Hard money for rehabbing?
« Reply #12 on: February 25, 2005, 09:17:43 pm »
A little clarification for anyone reading that may be confused: paying for repairs upfront and then being reimbursed later IS the same as money being placed in escrow. DHLC is correct. What I meant to say is that there are lenders out there that will allow you to do deals if you don't have a lot of upfront money to dish out on repairs. These lenders will give you repair money at closing. Of course credit is a big issue. I meant nothing negative toward William Lowe of Investwell. I've heard nothing but good things about that company and was actually referred through a collegue. But my advice to any newbies is that if you don't have adequate reserves, look for a lender that will work for your situation. Every situation is different.
Work smarter, not harder!!!

Offline EZmoney

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Re:Hard money for rehabbing?
« Reply #13 on: February 25, 2005, 09:29:57 pm »
If the rehab is less than $10K, write in as an addemdum to the offer--use a subprime lender that will work with you---better rates than Hard money. Your addemdum states that $10,000 will be paid DIRECTLY to xyz rehab corporation by the seller, and reflected as a dispursement on the HUD-1 (sellers side).  By having the credit issued directly to the rehab company--it isn't reflected as a credit to buyer. More like a lien being paid by the seller to a vendor.

Jeff
Do your homework on each deal. Understand your market and your own financial strength and weaknesses. I have been doing R.E. finance/ mortgages/r.e. partnership syndications. for 25+yrs. email me your real deals.
 A few good people hunger to make money by sharing their experience--network together.

Offline eager2learn

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Re:Hard money for rehabbing?
« Reply #14 on: March 15, 2005, 09:46:41 pm »
Hello,
 
I have several question? I have looked through various HML websites. They usually offer a page where one can apply online. But I was wondering what exactly is needed to apply for one. What documents must I provide? Should I write up a business plan? If so how does one write a real estate business plan? I have software I have purchased and plan to use.

I have no $ to start with and poor credit so I would be starting from scratch.

thanks
Eager

 




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