Hello all. I’m just starting out in RE investing. I have a question regarding hard money financing. Now the term for most hard money loans seems to be for 6 months (interest only). Lets say that you purchase a home to rehab. So basically does this mean that you have to fix it up and sell it within 6 months? Thanks.
My hard money loan is for 6 months, but they included a provision for 2 extensions 3 months each. Of course they want 2 points each time I extend. I am trying to refi to save money. 6 months go by fast so make sure your exit is realistic. also i was lucky to get some great advice from a local loan officer who warned me about some lenders and recommended others.
Yes, 6-months is typical, it used to be 4. As the previous post mentioned, they will extend for additional pts. If using hard money you really need to plan to get refinanced or sold (and closed) before the 6 months is up.
In fact, if possible, you should have a lender who you know can get your refinanced in 6 months before you even take on the Hard Money loan.
Hard Money loans really are taking a beating on these boards the last couple of days. I have worked very successfully providing HML to my investors in the past. And reiauctions has it dead right. It is all about the re-fi. I have a question for the rest of you. Why, oh why is it taking you 6 months to finish a rehab?
it doesn’t take 6 months to finish the rehab, but it certainly taking longer to find buyers and close, not to mention most lenders want 90 to 180 days seasoning. Refi is an option, but adds around 4% additional cost.
Hi, I’m new to investing and wonder if I can get some hard money lenders references from some of you. I’ve looked at quite a few, but it seems like alot of them want alot of the things the bank does, and have so many different rules its hard to know which ones are reputable. So if any one can help that would be great.
Most HML’s only work in certain areas. It would be helpful to know where you are investing. Indiana? Where in Indiana?
Fort wayne actually. I have went through the list of hard money lenders on this site, or so I thought, ends up I have two coventional brokers calling me now from filling out forms of what I thought were hard money lenders. Thats why I wondered if anyone had a good source for one in this area?? Pretty bad timing just starting out I guess! Thats usually the way I do things!! Would appreciate some in-put on the HML Thanks