Thanks for the response. One thing I was wondering is if I have say $15k in rehab funds escrowed, how do I break up the repairs if I have only 1 or 2 contractors doing all the work?
Do I figure out what part of the work is worth 5k and tell them to stop there until the inspector comes? What if that is in the middle of a job, it won’t get a good inspection will it?
If I have them complete 2k worth of work first, will I get the full draw of 5k?
How long does it take to have the inspector come out, same day, few days, etc…?
If it cost to have an inspector come out every time, obviously I would want to get more done before I request a draw, but the contractor will want them to come more frequently. How do I balance that?
Sorry if I’m asking too many questions, and you don’t have to answer them all if you don’t want to. Reading over what your company offers, it’s about the best I’ve seen as far as what I ‘think’ I need from a HML.(haven’t used one yet, so i’m not really sure) I will more than likely be giving your company a call as soon as I go under contract on my first property. Thanks in advance.
Your GC will create a Scope of Work. Have him cut it into pieces that fit your budget or have your HML pay the vendors directly. Example Paint…then Carpet, make sense.
I’m new to real estate investing and have been reading everyones books. I am working on increasing my FICO score but it is low. I’ve heard of Hard Money Lenders that don’t do credit reports and verification. Is this true, if so, who are they for the New Jersey area. I really want to get started. I have some good deals that I would like to react on but no cash available.
My HML did a credit report and loaned me money anyway. I am personally in a Chapter 7 and Chapter 13, both still active. If I can find one with my credit you can too. They mainly use the property and loan 60 to 70 % of the repaired value. They like to see some experience in rehab or construction most of the time. You may be able to overcome that if you use a contractor to do the work for you.
As far as New Jersey, use the link here at the club site you quoted or search google for "New Jersey Hard Money Lender ". Another idea is to talk to other investors to find out who they use.
Thanks Ted, I really appreciate all your help. If there is anyone else out there that can steer me to a Hard Money Lender that is good to deal with and understands my situation, I would appreciate anyones help. My brother in law is a building/remodeling contractor and he would help me with the rehabs. Again Thank you
I really don’t want to be like a dog chasing his tail in this discussion.
I’d be interested in hearing from other hard money brokers who are finding such money at 8%; and, others finding private money at 6%.
Anyone else out there getting such terms?
I’ll be talking to about 100 people tomorrow that are in the lending business. What you are basically saying is that many of them should be lending money to me for my clients at 8%; and, if I’ve had a business relationship built up with them for some time, they would be giving me private money at 6%.
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When I think of hard money versus private money I think of two different things. When I think of hard money I think of people who are in the business of lending money. When I think of private money I think of people who DON"T KNOW they are in the business of lending money. There are a lot of people who have money and don’t know where to put it. For instance, the doctors, the lawyers, the CPA’s, oh, and that janitor across the street who got that big settlement. These people are getting 3% in their retirement accounts if they are lucky. Why wouldn’t they be happy to get 8% from you. Ahhh, now your thinkin.
I have three buyers for the houses. I have to close before I can rehab. My credit is very bad. None of my fault. No one wants to hear that. I need hard money to buy, rehab
and then I’ll sell immediately.