1st deal financing - Posted by Kim F

Posted by Beldorian on February 28, 2000 at 20:39:45:

Hard money lenders, by definition do not make the loan to the individual. They make the loan against the property. Usually, they will loan between 65 and 75 percent of the ARV according to their appraisal and, in Texas, (sorry I don’t know about NY) they are charging between 12-15% interest.

Hope this helps

1st deal financing - Posted by Kim F

Posted by Kim F on February 28, 2000 at 17:50:10:

Help! I have been studying and talking about getting into this business for over a year. It’s time for action and I’ve found a deal to start with. Here’s the deal and my problem: The deal- purchase for 50k estimated repairs 25k(from my husband who is a contractor),after repaired value is 120k based upon comps from Mls. Heres the problem-money!!

We own our own mobile home worth about 55k which has no mortgage. I make only about 20k year and my husband has just started his own business. Our credit has been poor in the past but is getting better. We have no cash to put down. I was thinking of going to a hard money lender for the purchase of the property. Then getting a home equity loan on my mobile home for the repair costs-or selling our home. We are willing to live in our first few rehabs as we repair them.

I guess my question is do hard money lender require any money down? Does anyone know of any in NY? Any other suggestions? This deal is a preforeclosure so obviously time is of the essence! Thank you in advance. Kim

Re: 1st deal financing - Posted by JoeB(Atlanta)

Posted by JoeB(Atlanta) on February 28, 2000 at 21:57:10:

Hi Kim, Beldorian is right, but to add a little more…hard money lenders usually charge points/fee. In Atlanta and most areas, it’s usually around 5 points (so 5% of the loan is NOT given to you, held back as a loan fee). They don’t usually require a down pmt, or are highly negotiable on it (maybe a cash advance from your credit cards would cover it??).

So your deal sounds do-able. Click on REI clubs at top left of page, and call NY clubs to find hard money lenders.

Good luck,
Joe Brillante