first hand HML experience

Hello all,

Looking for anyone with first hand experience. Im thinking this may be the route to go for me for my direction (flip and hold) Can I act as my own GC for the rehab and just pay “my” subs with the draws? I just finished a total gut job to remodel of our 2500 sq ft primary residence from an insurance claim/fire, and realized the only thing you need to be a good GC is a smart phone. My family has a residential construction background anyway. And also, ive talked to a few lenders and am getting hazy resposes to this but, how much of the loan can be rolled into the 70% of Arv? If the 70 covers sale price, rehab, and dp, originations points, and other fees, can that stuff be rolled into the loan typically? I know the lenders want you with some skin in tbe game but ive heard of it differeing deal to deal as well. In others words if the deal is good enough is it unheard of to pay only appraisal fees etc?



An existing home will be hard money with or without rehab financing included. Most HML will not loan rehab money but purchase money only and most want 20% down, some lenders will loan purchase and rehab money but still want some skin in the game.

Hard money lenders do not loan on Owner Occupied Property!

You need to establish a track record before a HML will loan 100% on any loan and that will take a period of years to establish.

Good luck,



It depends on where you are.
Here in Texas we have a number of brokers that will do a double close for you.
The first is a HML for the purchase with rehab money in escrow.
Once the rehab is complete you have another appraisal and get conventional financing with a second closing.
There are lots of fees and interest and two appraisals but if you buy right (70% of ARV= purchase+rehab+closing) you can do it with very little money out of pocket.
Most brokers require sufficient resources to make interest payments and contingencies.

I have found the best HML’s to be local guys.

Good luck acting as your own GC or getting a GC license in Florida. The contractor’s cartel made sure that it’s practically impossible to get that license and they made sure that you had to hire them, by getting a law passed that says you can only act as your own contractor on your own homestead property. You cannot act as your own contractor on investment properties.