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Author Topic: TRU HARD MONEY.PLEASE!!!!!!!  (Read 16148 times)

Offline DHLC

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    • DHLC, Inc
Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #15 on: November 24, 2009, 08:10:34 am »
RookieNYC

True!  Taking back a property is inevitable in this biz.  Further I would also concede that I would make a loan to someone based upon a 50% LTV loan without much if any cash in the deal...however in TX that is the exception not the rule.  And getting financing for a Jumbo home loan is near impossible now.  All that aside, that is why I like being an HML... I do deals I want and pass on those I don't.  This is why REI is such a great business if you are looking for long-term wealth creation...not a fast buck.
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 #16 on: November 24, 2009, 12:24:13 pm »
This is why REI is such a great business if you are looking for long-term wealth creation...not a fast buck.

I agree ...I love the HML business...

Offline labailout

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #17 on: December 02, 2009, 07:02:07 pm »
I've been arranging hard money loans since 1989 in California. I've seen a lot of weird transactions but they all end up with the borrower putting some cash in the deal or additional property.  How much equity is needed depends on location, credit, loan amount, financial conditions, the subject property condition, the general economic condition and the investor mood at the time. Here is short funny video on YouTube http://www.youtube.com/watch?v=ESddekRvK3E   

Offline wrirya

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #18 on: December 04, 2009, 10:03:01 am »
DHLC

I enjoy the conversation. I think you and I would get along great. If you are ever in Salt Lake I would love to buy you Lunch.  I came from the Rehab and Retail background before I became a lender. I really know how much work and value there is to finding a good deal.  My point of view is that the most important number is how much money we have into the property. I agree that if a borrower puts money down on a property the likleyhood of them defaulting is lower, however we also belive that if there is profit in a deal a borrower will not walk away either.  As long as we are lending at a good value on the property or position is that we dont care if the borrower puts money down or not.  That allows us to help borrowers what are not able or dont want to put any money down.

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 #19 on: December 04, 2009, 01:47:45 pm »
That allows us to help borrowers what are not able or dont want to put any money down.

Why would you want to lend to someone who has no money in the project..Im sorry but I went to your website and found it laughable at best at how dangerous of a situation you put your investors into..

Offline wrirya

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #20 on: December 04, 2009, 02:01:57 pm »
rookieNYC

I am glad you viewed the site. I would love any other feedback you have on it.

Bottom line is where is the individual reonsiblity. Cant an "investor" know if they are making a good purchase or not? At the end of the day if the investor is not able to make any money neither are we.  We want our investors to buy good deals. The amount of money the investor puts down has nothing to do with how good of a deal they are purchasing

For example Down Paymnet

A borrower is buying a property for $100,000
The lender makes the borrower put $20,000 Down
Lender Loan is  $80,000

What if on that same property the borrower came to us and asked us to lend $80,000? The investor found or negociated a better deal and we think they should get credit for that.  How is it risky for us to loan on a low LTV?

We are really doing safer deals for investor borrowers. Becuase for a borrower to do a loan without any money down they have to get a really good price.  What does the amount of money being put down have to do with the value of the property? Nothing! We lend based on the value of the property and what the borrower is buying the home for.  It is really that simple.

I love the feedback and would like to know what specifically makes you think that we are putting burrowers in "dangerous" situations?

I hope I am not coming accross arguementative, I just really belive in what we are offering. I belive that what our borrowers are doing is helping this econcomy and country.  I really am intrested in your thoughts.
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 #21 on: December 04, 2009, 08:03:14 pm »
wriya,
   Just out of curiousity is it your money that you are lending at such a high LTV or investors money?...I lend out my own money and I can tell you I would never lend to anyone  without skin,equity,money whatever you want to call it in the game..If your method is working for you then I wish you the best...

Offline rookieNYC

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #22 on: December 07, 2009, 02:22:39 pm »
wriya,
  My last post mysteriously disappeared...My question is as follows...

Are you lending your own money or investors money at such high LTV's...?
« Last Edit: December 07, 2009, 02:40:24 pm by rookieNYC »

Offline wrirya

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #23 on: December 07, 2009, 02:55:16 pm »
What do you consider "High LTV's'?
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 #24 on: December 07, 2009, 07:06:18 pm »
good enough...ty
« Last Edit: December 07, 2009, 08:51:33 pm by rookieNYC »

Offline DHLC

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Re: TRU HARD MONEY.PLEASE!!!!!!!
« Reply #25 on: December 09, 2009, 01:06:58 am »
What do you consider "High LTV's'?

Anything above 70% LTARV (Loan to after repaired value) is considered HIGH by me.  I am assuming RookieNYC uses the same gauge.
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 #26 on: December 09, 2009, 07:06:11 am »
Im actually lower than %55 LTV because I prepay myself my the interest and points off the top of the loan..So my money exposed to any one deal is very low ,in the area of %35 LTV...But yes on the actual loan Im at no higher than %60 LTV..I am using my own funds to fund these loans so I try to limit my exposure as much as possible..There is no holy grail when it comes to protection when funding hard money loans. But if you implement strong due diligence,have an excellent attorney and paralegal handling title work and background checks of the borrower to insure there is no fraud..Also use the deed in lieu of foreclosure to bypass lengthy foreclosure courts,prepay yourself on every loan for entire term and keep your LTV exposure as low as possible you lessen the risk considerably IMHO...Like I said earlier I only lend to people with equity,money in the %40+ range in my deals...My reasoning is the borrower wants to default its going to hurt them significantly...I will win in the end...You cant change the fact we are in first position...

 




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