good morning everyone 8)
i just wanted to share a little info with everyone.
being a newbie, i thought some of you could use this info also.
awhile back i was looking for hardmoney lender’s & i came across one that i believe is the best so far.
if your like me w/ so,so to bad,bad credit than this might be what your looking for.
you dont need credit
you dont need money( except a one time fee of $ 100.00
to get the paper work started, which you’ll get back once the deal has gone thru)
the investors will give you 100% for every thing,the purchase price, the money for repair’s, money for closeing
you dont need anything, nada, zip, nothing.
heres how it works.
say, you have a property for 90k, you need 10k for repairs & closing.
the lender will give you 100k, you buy the property, repair it
& flip it to your investor or put it on the market for sale & now it has a value of 150k.
once it is sold, the investor gets his 100k back first, this leaves 50k. ok, now the investor charges 3% monthly, say it took from start to finish 3 months, he gets 9k, this leaves
41k & the person who put this all together for you gets 10%
($4100) your profit ? $ 36,900.
not bad at all. i think its great!
You didn’t give us the telephone number so we could run out and do these deals with you.
Several things reach out and grab you. First is the LTV after repairs. You are in there for 67%. Most of the deals I can find are closer to 75%+. Another thing is the purchase, fix up and sale in 90 days. I see very little of that on a cash out basis. Easy if you owner finance in that 90 day period.
Now the good part- the hard money man gets 3% per month and somebody gets 10% for introducing you.
So on that proverbial 100K house that you buy for 65 and put 10K into but takes 6 months to get the end buyer to close; the investor gets 13.5K, the broker gets 2.5K and the guy finding and doing the deal gets a wopping 9K if he doesn’t have a realtor bring a buyer.
If it is the wrong time of the year the money man will get the house.
A hard money lender at 18% annual would be preferable. Better yet a credit line at a bank at several points over prime would make more sense.
Your investor should be carefull. 3% per month is 36% per year and that is usuary. The penalty in Texas is a free and clear house plus even other penalties I believe. Bud is right as my hard money lender charges less with my horrible credit. I would prefer to use banks at prime plus but the will not even talk after BK and several foreclosures. Use what ever method you can that is not too risky and costly. You guy is expensive especially with 10 points but at least you are calling the shots and doing deals and not on the side lines wishing you could do a deal, Good luck with whatever program you choose and hope you resell fast.