Hard Money Lenders Qualifying?

G’morning to all, Quick question; When hard money lenders say 5-30% down, is this paid to them or toward the seller then they verify? If to the seller then I could see fit but to them it seems high with 4-6pts. also! And credit checks as well! Any info on HML in SC that are not big on credit with better terms than those above?

Thanks, Phil

Boy I tell ya, There’s a lot of helpful people on REICLUB. Thanks anyway :sleeping


Have you tried Commercial Lending LLC, out of MD, but loan in SC.


I posted about a company that contacted me

And wanted me to pay them the down payment and would refund the down at the end of the contract

But i do no think this is right

The down should be paided to the seller as this is part of there sale price

So they get something out of it all for sure if the buyer messes up

As well there are a lot and it is most now hard money people want there points and or fees paid upfront

And they are any where from 4 to who knows i guess it is looked at as to how high the risk

ok Thanks, I do have there #. I’LL try that route! :exclaim

If the money source (private or hard money) is asking you to put money into the deal (or what they refer to as “skin in the game”), then typically they require you to show proof that you have the funds (bank statement) and can bring it to settlement. The wise investor ties up the property with a min. deposit (good faith), then the balance of the money needed to settle the transaction is brought to the closing table. If a loan is gained by the buyer, then the lending source delivers (wires) the funds they are providing to the settlement agent at settlement. Example: you sign a contract to buy a property for 100K with a $500 deposit given either to the seller at the time the contract is executed, or given to the settlement agent handling the closing to hold in escrow, and are approved for a hard money mortgage in the amount of 65% of the ARV (after repaired value) of the property. If the ARV of the property after repairs is valued at 200K and the hard money source loans 65% of that, but wants you to have 5% of your own funds in the deal, they would wire 125K (200K x 65% = 130K - 6.5K (5% of the loan amount) = 125K). From the 125K wired to settlement plus the 6.5K you are bringing to settlement would be deducted the purchase price, closing fees, points, lenders fees and repair costs (escrowed and taken out in draws). So, if a lender asks you to give THEM the money, instead of showing them proof that you have it and bringing it to settlement - RUN AWAY from that lending source. It is typical in this market for the hard money lender to require the buyer to have some money in the deal, and when they say 5%, they typically mean 5% of the loan amount, not the purchase price.
Rob Beeman
Grindstone Financial
Hard Money Mortgages

That was what I was looking for! Thanks a MILLION, :bigthumbup

You are very welcome. Credit programs are constantly changing in the current market. Some of the money sources I have used to help real estate investors get the funds they need to do their deals are out of business, while others have tightened their lending criteria. If you don’t use them all the time it is tuff to keep up with what the current options are. If you don’t have luck finding what you need in SC for financing, let me know, I might be able to assist.


I saw your email explaining the HM lenders clearer. I have ran across a few that you have described and thought that it is the way it supposed to be.

If you know any lender for residential properties in NY, (Queens/brooklyn counties and nassau county) that is more friendly to investors, than I appreciated greatly.

Thank you…