Newbie question

I posted this to another thread but though I would create my own post.

Can someone explain to me what HML is? sorryry newbie question.

Also, being new at this, how can we gain experience from estimating repair costs? Should we hire someone to estimate the repair costs for us before the papers are even signed or should we just estimate it ourselves? I would hate to lowball an estimate when in actuality it is much higher which can really break a deal. But, having to hire someone each time I’m looking at a property can be pretty costly. Anyone know how much is costs to hire a home inspector? Thanks

HML = Hard Money Loan or Hard Money Lender…this website has a “Inveting Glossary” page that describes HML as: Hard Money Loan - A loan that is underwritten with the condition and value of the property as the primary criteria for approval. Secondary issues may include the credit of the borrower, the ability of the borrower to repay the loan and/or the ability of the borrower to manage the property or successfully complete a rehab and sell the property. Owner occupancy, debt ratios and other issues are seldom a factor. Appraisals rather than purchase prices are used to determine value. Cash out purchases are often allowed and are another key benefit. These loans are usually approved within days and are often funded in two weeks or under with times as short as two or three days not uncommon. The cost for the benefits of speed of funding, lax underwriting and other advantages is typically a moderately high interest rate (usually low to mid teens) and high points (usually 5 to 10). (See definition of “underwriting” below.)

If you don’t have a good appreciation for cost of rehab, yes, you should get a repair estmate. Often, if you have a good relationship with a reliable contractor, he will give you an estimate (in hopes of getting the work)…

As for a home inspection, I paid $250 for the one on my private residence (in Louisiana). I think that is about right for a larger SFH. Expect to pay more for multi-families.

I think I am experienced enough to do my own estimates for the routine stuff…the property that I am refurbing now is running about 95% of my estimate (I’m almost done!).

My two cents…hope it helps.



How are you? Ask as many questions that will make you comfortable… A lot of your answers are here, that’s for sure… Just be patient and keep reading…

Have you read any of the Rich Dad Poor Dad series by Robert Kiyosaki? just curious, because that is a book that everybody should read… it helps put you on a course to financial freedom…

Stay focused and keep pushing…

i second that ! ( rich dad poor dad ) but lets not forget
“the richest man in babylon” by george s clason. this book too is a must read.