Hard money for rehabbing?

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?

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.

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

do they lend anywhere or just acouple of states?

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 :slight_smile: They have given me a “pre-approval” letter to make an offer on a house, I’m just looking for the right deal.

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.

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.

What is your 2 step solution?


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.


There are lenders out there that will do it (and at no extra cost). They aren’t that hard to find either.

Really! Do tell. I can’t get that type of loan myself. Remember this is for Investor Property .

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.

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.



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.


You are not applying based on credit. You are applying based on the deal. Most HML applications ask for the info we require for our loan docs as well as for a brief overview of the project. What is the ARV? What is the Amount and scope of repairs?, Who is the title co.? Requested loan amount? These are typically the questions found on a HML’s loan app.


Thanks Rob,

so you are saying that there is no need for me to put together a formal business plan? I have this software I bought and am thinking of returning it.


There is an ocean of HML listed on this web site alone Listed under INVESTOR RESOURCES sub title hard money lenders.

I also recommend that you go with a HML that is in your local area if you need anything between 70-80% LTV there are hundreds of them that will do it at this level.

I will have to beg to differ that the industry standard is 65% LTV you will find more deals at 70-80% because of the same idea it is Lenders doing short sales or other wise want the most they can get out of the sale.

Hi everyone… newbie to the forum here. Nice place!

I flipped about 2 dozen houses including rehabs, L/O, sub2, etc., and got out of the biz due to burn out and slim pickens during slow times, but now 7 or 8 years later I’m back in where the market is very hot presently.

I had a deal drop in my lap from a realtor… house worth somewhere between $300k and $325k that a desperate seller said he’d take $230 if I could close by Friday. This was on Monday. I signed the deal… this is a pretty house that just needs paint and carpet and doodads, and is 3/10 of a mile from the beach.

I didn’t even have money lined up.

Got on the phone and found a hard money lender at the other end of the state who loaned me $235k. This was about 75% LTV. He didn’t even get a formal appraisal, just had a realtor contact of his here who he trusts who looked at the house and told him he should loan me the money.

I closed on it last Friday.

Some lenders will look at the deal and if it makes sense, will go higher than 65% LTV.

Now I just need to find about 5 more of these this year!

Exactly beachmaster, You found someone local from that state and did the deal at a great LTV% There is a lot of competion to lend money because people do not want to invest so much in the stock market.

It is when you are dealing with a National Company that does not know the area or does not have a comfy feely about the stateand usually lends a 65%LTV

So fellow investors please please don’t give up on a deal when you are dealling with homes under 80% LTV because you will find a HML in your local area just ask open your mouth.