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Author Topic: TRU HARD MONEY.PLEASE!!!!!!!  (Read 16145 times)

Offline CASHTANK

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TRU HARD MONEY.PLEASE!!!!!!!
« on: October 05, 2009, 10:38:14 am »
Does anyone know of any Real Hard Money lenders or private Investor that will lend in Minnesota?
Not based on credit or income just the equity in the property or the ARV,which is Tru Hard Money.
I deal in 2,3,4,5, family investments and have them under contract.
Minnesota is one of the top ten states that will have an excellent come back when the market recovers.Our housing market fell 35%.
I have an LLc and will return 25% on any investors money.I'm professional and expect the same.
I expect to pay no fees up front and please no 20-30% down,and if so I can just go to bank.
Thanks Cashman

Offline Gold River

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #1 on: October 05, 2009, 01:55:51 pm »
Hi,

    In todays financial markets and because of the real estate melt down you can not expect to get any "Real Hard Money Loan" without having skin in the game.

I have been investing 30 years, have great credit and have a huge income and net worth and references and I still can not buy real estate without having money in the project.

Most hard money lenders want 10 to 30% from you plus closing costs reguardless of what percentage of FMV your able to buy the property for and expect to pay potential appraisal fees, lender set up cost's and closing cost's up front.

Hard money lenders are not going to loan more than about 60% of FMV in this market so you have to really buy them right.

Your not the first guy to want hard money with nothing in the game but it's just not going to happen.

Good luck,

                   GR


Offline real estate 001

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #2 on: October 05, 2009, 03:42:16 pm »

HELLO

A lot of people  here think iam the king of asking this very thing 

But iam not there is one big diff i do not want  a loan with nothing in the game from me

I just want it  with the least of me in the game

I will say that 100 % are possible but not  from any hard money person or company

You have to dig hard and  make a lot of contacts  and  kiss a lot of frogs  now days in the game of real estate


You may get  a  60 % deal some  where   and then most hard money people want you to have  at the least 10 %  and most  times  more like not less then  15 %  in the deal  from your pocket

So to speak   by this iam saying if you do not have it  and it is a good deal  talk to friends  /family  about  the deal and may be them  getting in the game  with you


And after all that may be a small seller carry  very short term


And then  some  will come along and say one of two things

WOW  you are good at this real estate game  or

WOW    are you flipping nuts

Offline hammertime

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #3 on: October 10, 2009, 05:24:50 pm »
You may find a few  opportunities out there, but they are going to require you becoming creative. 

Try Accounting firms as some of their clients may be looking to invest some cash in. You can also try real estate attorneys. They are the ones who draw up documents for hard money transactions.  As we all know, Real estate paper is a pretty secure investment, and people who understand the business of lending don't mind doing real estate loans, especially when the LTV is low and the interest rate is high.

Good Luck!

Offline wrirya

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #4 on: October 12, 2009, 12:39:54 pm »
What a great conversation.....

I think you will find that it takes less creativity than you may think. I agree with CashTank, investors need a source that they can find funds based on the quality of the property they are buying not based on the person.

CashTank we know of several lenders that will loan you money based on the property. Many of them will loan with you having to put 0 money down. In most cases you will have to fund the repair cost (but most investors use a home depot credit card or other credit card and pay it off when the property sales). However I think you will find that these lenders will want to pull your credit just to get an idea of your history. This will not determine if they will do the loan or not, it will determine the intrest rate they are going to charge you. I agree with you that income should not be a condition of you getting a loan on an under valued real estate.

Cash Tank... does Minisota still have a 6 month right of redeption? Do you know if that aplies to non owner occupied?
Ryan G. Wright
www.dohardmoney.com
800-284-0076
We Lend Money to Real Estate Investors.

Offline moellerryan

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #5 on: October 22, 2009, 05:32:05 pm »
Private money is the way to go but I recommend you offer 8-12% return, 25% is way too much and will raise red flags to potential investors.  If you find deals at max 70% LTV with solid cash flow you will have multiple exits and have mitigated risk.  Talk to everyone you know and mention you use private money to fund your deals and ask if they know anyone who would be interested in a great return back by real estate.
http://www.RealReturnRealEstate.com
Our goal is 20 deals this year.  FREE guides, webinars & over 140 tips.

Offline dro007

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #6 on: November 03, 2009, 11:36:03 pm »
Can you tell us who will do the loan on stated income.  I'm looking for funding as well.

Thanks

Offline kospiah

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #7 on: November 09, 2009, 11:52:07 pm »
I know of a  true 80 ltv stated program but you will need 15% and they are offering cashout at closing. Provided by a 20 year trust program

I would very much appreciate if you could provide a referral list.  I'm seriously looking for hard money lenders to fund one great deal I've located.  Thank you so much for this hopeful hint.

Offline joemccleery

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #8 on: November 10, 2009, 12:33:34 am »
Hi everyone, My first post, and I would like the referral list as well. I have a couple of deals here in Columbus, Ohio I've been working on.
1) repurposing a 92 unit apt. complex from the present 2BR-1Ba into 3&4BR-2Ba X 46 units @ $22K/unit including purchase price & Rehab. 100% Vacant now. I have no credit, low income, High drive and construction experience. Wanting Partner or loan. Present Value=Significantly more than $320K purchase price. Future Value= 46 X 1400sq.ft. X $50sq.ft. as condo's, $750 mnth/rentl.= $3.2 million
2)Historic district: 1850sq.ft.Dbl., $150K lowest comparable Condo (1/2DBL) $20K liens, quick flip or $60K/side rehab. Partner or Loan. If I said 8-12% possible, I'm regular. 25%, I'm crazy. But 50% cash on cash, I'm INSANE. But the numbers don't lie.

Offline rookieNYC

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #9 on: November 10, 2009, 11:17:18 am »
Private money is the way to go but I recommend you offer 8-12% return,

LOL....I am a HML using my own capital and have currently over 14 mortgages outstanding and not one is below %15(plus points)....And every borrower has over %40 of equity or skin in the game...The days of borrowing at astronomical LTV's are OVER..There is no secret..Dont waste your time asking because there are no HML out there willing to lend at over %60 LTV...Im also holding a signed deed in lieu of foreclosure and I get the first years worth of interest and points off the top in ADVANCE..Or I tell the client to look elsewhere for funding...


I also get inundated with emails asking if I will fund at ARV and I dont even answer the emails..Even funnier are the emails asking for funding for a foreclosure and they expect the lender to fund %100 of the purchase price of the foreclosure...These days are gone forever.
« Last Edit: November 10, 2009, 11:20:03 am by rookieNYC »

Offline wrirya

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #10 on: November 13, 2009, 02:50:12 pm »
I would not make to many broad generalizations. We know lots of hard money lenders that will lend up to 65%. We also know lenders that will lend without any of the borrowers funds down.  Keep looking there are lenders out there that are Real Estate Investor Friendly. It is really simple, Hard Money lenders want to make a good profit being safely secured on a property. Hard Money lenders dont charge alot of money becuase they want to take on risk, the charge the money becuase they are fast and can lend on things no one else is willing to.  There are lenders willing to lend without the borrower putting money down. If the property is has a good value why shoudl it matter to a Hard Money Lender if the borrower puts money down or not. Hard Money is really equity based lending. The strengh of the borrower should not be the primary concern of the Hard Money Lender.

Happy Investing
Ryan G. Wright
www.dohardmoney.com
800-284-0076
We Lend Money to Real Estate Investors.

Offline rookieNYC

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #11 on: November 17, 2009, 06:07:06 am »
From the problems this country is facing and the other notes that I hold I would never lend to someone without skin in the game.When you have something important to a person be it money or equity or property held contractually THEY WILL PAY YOU..Give someone the option of losing little to no money THEY WILL WALK..Making you the bagholder  I'd much rather someone leave me with equity or their money when they screw me..I communicate with many HML and brokers to insure my business remains competitive and NO ONE is lending higher than %65 LTV and or cash/equity in the game..I deal with Hedge Funds/HML/Bankers/Brokers and I have not heard of anyone lending any other way..Leverage is what created this problem and lending to people with nothing to lose..Collateralized lending will be the way banks and investors do business for many years...Get use to it...Leverage is what put us in this problem in the first place...IMHO Real estate investing is something that people with money do...You dont go into any business without *real* capital invested..Why should RE be any different..

Offline wrirya

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #12 on: November 17, 2009, 05:54:07 pm »
rookieNYC

Great discusion. I enjoy the conversation. From my vantage point there are two seprate issues here

1. Traditional Banks that lend to homeowners
2. Hard Money lenders that are lending in Investors that are Helping to Save our economy by taking on risk and brining jobs, capital and moving funds around in the market place.

It is true this country is facing problems due to homeowners getting to much money on homes.  I think the bigger problem is the Goverment taking over the bad problems of the banks. The banks made the loans and made amazing profit along the way, but they did not save any of that profit for the time when the party was going to end. Most of the models for banks always had apprciation a part of the model, History shows that can not be sustainted.

Next is Investors that are helping banks by taking distresed assets that are in need of repair. This recapitalizes the bank. Then the investor hires people to do work localy and buys suplies. On average most investors spend between $10,000 and $30,000 in repairs. This has a direct impact on the local economy. Next the investor typically sales the home at a discount so they can sell it fast. The new homeonwer is getting a home at a discount 3% off lets say so the homowner is getting a good deal. In fact most homeowners are getting a fixed up home when others in the are not. Then the bank is able to do a new loan that would not of been able to be done otherwise.  Lastly the hard money lender makes money and is able to spend that and put it back in the market place.

I have to say that the current problem this country is facing has NOTHING to do with Hard Money lenders lending 100% of purchase price. At the end of the day if a borrower is buying a property for $65,000 that needs $10,000 in repairs that is worth $100,000 after repaired. For a hard money lender to lend them the full $65,000 what is the diffrence between that and having someone that is requesting $75,000 on a property worth $100,000 and a hard money lender asking them to put down $10,000.  for a loan amount of $65,000. The bottom line is that you are concerned about the amount of money that the borrower is putting down.

Money is really just the exchange of value. Bascially somoene is paying money for something that they want more a purchase. In my eyes value or money could be a borrower that has a great deal on a property. I would think that a good under valued property is value put up by the borrower in good will that they do not want to lose just like a down payment from a borrower.  I am not saying we would not take a down payment however I dont belive that every borrower has to have a down payment.

Happy Investing.
Ryan G. Wright
www.dohardmoney.com
800-284-0076
We Lend Money to Real Estate Investors.

Offline DHLC

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #13 on: November 22, 2009, 11:07:57 pm »
Just my $0.02.

Equity does not equal skin in the game.

A borrower is much more likely to walk away from potential equity that is only his if the deal works vs. losing REAL money that he has in the deal.  I have been doing this for 7 years and I can tell you that I will never lend above 65% of ARV and I require borrowers to have 15% -20% of their own money in each deal.  WHY?  'Cuz I don't ever want to take a property back.  :biggrin
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 rookieNYC

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #14 on: November 24, 2009, 07:16:49 am »
DHLC
Im fully comfortable taking a property back at %50 of *todays* value..So when I lend I do consider this to be skin in the game....I have investors waiting for a default to buy properties from me..Example...I just did a loan for an investor who put up 3 free and clear properties currently appraised for 500k..He got a 225k loan at %15 +5 points...Prepaid the first years interest off the top 45k...Put the deeds signed in lieu of foreclosure with my attorney in FLA...How can I go wrong if he defaults with 450-500k of equity with only 175k out of pocket..Even if I firesell the properties for 350k vs 500k I have huge gains...Mind you Im using my own money so Im comfortable with this risk..Most of these *supposed* HML borrow their funds..So ofcourse they dont want to take back any properties because these people are playing with no money to begin with..I evaluate every deal with the possibility that it turns into a loan to own situation..But I agree that I rather have my money back in a clean transaction but as a HML you have to know that eventually it will happen..Its inevitable..
« Last Edit: November 24, 2009, 07:18:57 am by rookieNYC »

 




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