Too good to be true??

Hey guys. I may have found a HML that will let me purchase a rehab and rent/sell at 100% depending on the ARV. That can also include mortgage pmts and closing costs. It looks like there’s a 1% pre-pay penalty for under 3yrs. It may end up being like $1500 max. But I can refi whenever I choose and pay the penalty. So I’m looking at this and seems too good to be true. I can basically get a property with nomoney down and switch to terms that will get me better cashflow,debt paydown & equity. Am I missing something or is this the way its done? I really could use some feeback. :help

As I sent you this information, I guess I should chime in here…

The program I sent you is legit, but you misread the guideline highlights I sent you—you will be required to make the mortgage payments (only purchase price + repairs + closing costs are rolled into the loan).

Rehab lending is the last bastion for 100% (or near 100%) financing left for investors—although you can finance 100% of these costs, they all require cash reserves or liquidity.


Scott Miller

What are your points for the loan, what is the interest? Almost all HML’s will loan you 70% of the ARV. So if you get a house at $50,000 and it appraises for $100,000 they would loan you upto $70,000 (actually you only get 67,200 because they take the 4 points right off the top) for the property and any other expenses.

Just be careful of the fine print. I have dealt with one HML that I could not get the payoff schedule for my refi to save my life. After everything these A$%holes put me through I had to pay 2 months of interest at 14%. Make sure you can trust the people lending you this money, most of the time it is one or a group of individuals and you sign a promisary note. So some of the regulations that concern ethics don’t aply to these individuals.

But if you have the right deal it is an excelent way to buy with lilttle to no money down.

Hey Scott! Somehow I thought you might chime in!! You don’t miss a trick! :smile I didn’t want to mention names because I wasn’t sure if I’d be breaking any rules. Please understand that I wasn’t questioning any of your integrity or the loan’s legitimacy. I’m sorry if I gave that impression. I just don’t have a lot of experience in this area and wanted to get some opinions and/or things to watch out for. We’ll continue this offline.



No harm, no foul—I don’t blame you for wanting to look before you leap…


Scott Miller

What was the name of the HML that gave you fits?


Scott Miller

As soon as I get out of it at the end of this month I’ll let everyone know. I just don’t want to screw it up just yet. If anyone lives in Colorado or Texas you’ll be shocked who it is…

let me guess DHLC??

Nope. He’s the Trouble Shooter…

The suspense is killing me—can you PM me?

Glad to hear it was not DHLC. He is getting some trouble over on a local rei site here in Dallas. Any business I have ever had with him has gone very smoothly. I am now curious as well. Can you PM me the name also?