Has anyone used ShortSaleFunding.com?
I have not heard about the site until today. How did you hear about these guys? I went to there site and did a preview. The first thing I looked for is how much do they charge, I found the following right off there web site
'What are the terms of the Loan?
12% Note Rate and 4-8 Points*, 30-90 Day term (1st Mortgages)
18% Note Rate and 10-20 Points* 30-90 Day Term (2nd Mortgages)’
I have been in the hard money business I would say the average for a 90 day loan (in this market place) would be 3.5 to 5 points for 90 days.
However I think there is a major problem in getting a 90 day. From my experience in flipping properties in this market I would never get a 90 day loan. The problem is that FHA buyers need to have a 90 day chain of title seasoning. Meaning the property can not be resold for 90 days. In most cases it is going to take 30 days to fix up the property. That will leave 60 days to find a buyer for a property and 30 days to close. You also need to keep in mind that in this environment lots of times the first offer you accept may not be able to get financing so you want some extra time for the just in case factor.
I would talk with the hard money lender and get them to write in two extensions are your option, meaning the Note would say that you could have two extensions if you paid the payments at your options not at the lenders. I hear horror stories every day with people getting there investment house taken because the lender was just lending to take properties.
I also think it is important to have some people that have worked with the company before, testimonials that talk about there experience. I would also recommend seeing there BBB rating. I personally have a love hate relationship with the BBB, but I think there is value in a third party saying that a company is dealing with the public in a fair and ethical manor.
All of that being said I have never seen a better time in the last 10 years to buy and flip investment properties. There are so many great deals to buy and there are lost of FHA and VA buyers willing to buy.
Thanks for your time!