Basic Question?

Hello all,
If I am looking for a Hard money lender to loan me money for an investment that I plan to flip; what are some of the things I must present to them and what are they looking for out of me.
Property in question : 3bd 1 bth & garage home
Owner is selling for 160k
Negoiated 135 to 140k with 25k down
About 1000 to 2000k repairs
Recent sales in area reflect market value +/- 10k

Thanks Youngone

I have never used HML’s, but my understanding is that their main concern is that they can get there money out of the property. I imagine they hit ya pretty hard with points and high interest.

When I need money, I call afriend or two and borrow from them on interest only - prepaid for 6 months i.e.

I borrow 50K they send me 48K - no payments. 6 months return 50K

or i send 2K, they send me 50K, return 50K in 6 months

no loan fees, no point,etc--------Cheap Money


The money is expensive (12-15%) with 2-5 points up front. I loan (1st lien only) on property appraised by my appraiser, with a LTV of no more than 70%. I loan for 1 yr and 1 day with a balloon or shorter term.

Thats a great way to get cash. People u can trust-a friend or good business lender. HMLs do often charge 11.5% on up. SO make sure you can get what u need after fees in order to pay them back.

I would recommend that you don’t use hard money in this case.

you only need 1-2 k get that financed in a regular loan an lender would alow up to 1-2% of cash back to lender for a carpet or what ever allowance. Just put that in to your contract when you buy this property and you would save 4-5 points that you could pass on to your end buyer for closing costs and get your house sold faster.

Thanks everyone, I worked out a deal with the owner : They will hold the mortgage on a wrap 140k @ 6.5% for 6 mths to a year. I’ll put 5k down payment or option consideration, which ever you call it. Make my payments for about 8 mths then cash them out with a conventional loan. And they agreed to me sub leasing the property until I cash them out, once repairs are made of course. And yeah friends and family are much better to borrow from if they have it, If they don’t that’s why we brainstorm to come up with a solution to our money discrepencies.
Thanks, youngone