Hard money loan process

Financing, Hard Money Lenders, Private Money
1

I live in southern California. I just happened to come across this website. I am an architect and general contractor considering flipping single family houses in my area. I am also considering building multi-family houses from the ground up as a developer. I was laid-off about a month ago from my employer of 12 years. Can a hard money loan help me? I wanted to know more about the hard money loan process. Or, are there any other funding sources that would be more advantageous for my situation?

Any advice would be very much appreciated. :help

2

Hard money is expensive and designed for short term use only. You have to be able to re-fi out of it to make things worthwhile. If you were able to find an end buyer for a flip, you could use hard money for a couple months. If you’ve been laid off, it would probably be difficult to re-fi.

3

if you don’t want to use hard money maybe you can use a portfolio lender on a free and clear property…To do a traditional bank mortgage may be difficult as justin pointed out…But hard money isn’t your only option…It all depends how much skin in the game you will have…The more the better…And considering you probably have a good amount of contacts from being an architect I would use that as a way to find private money…Just an idea…

4

Thanks so much for the help.

5

Well, everything depends on the amount of loan you need. You can go to bank and ask for financial assistance there, or you can apply to commercial lenders providing small short term loans. It depends on your very situation and financial abilities. Besides, you credit score is an important factor which determine whether you can qualify for hard money loans. Anyway, good luck!

6

California Rehab Flip Hard Money Loans – Loan to cost
Residential and Commercial REO, Distressed Sale, Trustee Sale, Sherriff’s Sale, etc.
Loan Amounts: $100,000 – $1,000,000 – No Prepay
Term: 6-months, up to two 3-month extensions
LTC: 70 (up to 75% exception)
ARV: 60-70%
Fico: 625+ (mid score)
Personal Gaurantee: All partners must sign a personal guarantee
Required Reserves: 50% of rehab costs * 6-months payments
Rehab Expenses: Must be fund controlled or suitable alternative
Rehab Draw: 2-3 draws permitted based upon inspection
Rehab Timeline: All rehab work must be completed within 75 days

7

Again, I have to ask, will an intelligible post EVER come from a ‘sify.com’ address?

Keith