I am from Texas. Is it common to receive cash when closing out a deal with a seller? I know that most hard money lenders give 65-70% of the ARV of a home, but what if the seller only wants 20% of that. How does it work? I am just curious and yes I am a newbie. Thank you everyone who are willing to answer our questions. It really helps all of us newcomers, so to say. ;D
Lee R. Love
That hard of a question? It’s called cash at closing, but is this possible with hard money loans? If, so how does it work?
Anyone everyone had a hard money loan before?
A HML will want a copy of your contract and will see what the true selling price is. That’s all they’ll loan, plus repairs, up to the 65% of the ARV (market retail price).
Hope that helps.
Thanks for answering! I just wanted to see exactly how many people actually knew about getting cash at closing using a hard money lender. Doesn’t seem many and I was told that many people would not.
I am new at this as well. but I believe you could refi the HML rather quickly with the LTV numbers. Of course this will depend on the terms of the HML ie early termination fees. It seems always a lot easier to refi than to aquire the first mortgage through traditional means.
I dont know this as fact I am simply stating what I have been reading and hearing through other peoples testimonies. If some one could verify this or disprove it, it would be great.