Direct Lender = Hard $ Lender? - Posted by sa

Real Estate Investing Real Estate Financing
1

Posted by Angela on February 08, 2002 at 11:27:15:

Please I’m in New York and looking for these Hard
money lenders.

So where might one find a “TRUE” Hard money lender? Everyone that I have talked to wants credit scores ect.

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Direct Lender = Hard $ Lender? - Posted by sa

Posted by sa on January 24, 2002 at 14:29:42:

Is a direct lender the same as a hard money lender, who doesn’t perform a credit check and lends based on the value of the property?

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Re: Direct Lender = Hard $ Lender? - Posted by Graywolf

Posted by Graywolf on January 25, 2002 at 14:49:44:

CREonline post 1

Real Hard Money!!
I have received numerous calls, faxes, e-mails and even letters asking what?s the real deal on hard-money lenders. At the heart of all these inquires is basically one question. That question is, how can I tell the difference between a real hard money lender and a non-conforming sub-prim lender that is claiming to be a hard money lender to justify charging 8 to 12 points up front and 14% to 18 % interest. This is an easy one. OK here it is plan and simple and don?t let anyone try to tell you different. Please understand my position on non-conforming sub-prim lenders, I think they are great. I get all my hard to place loans done through these lenders, however, this is not to suggest that a sub-prim lender has the ability to make a hard money loan. The following are things that a hard-money lender will NOT ask you for:

  1. Hard-money lender will not ask you what your credit score is, he does not care one bit.
  2. Financial statements.
  3. Tax returns.
  4. Will never ask you to jump through hoops.

Now what he will ask you for is simply this:

  1. LTV 65% max.
  2. Appraisal subject to completion.
  3. First lean holders position.
  4. Exit strategy

If you can provide these simple things you can get a real hard money loan.
No doubt this type of loan will cost you the big points up front (8-12%) and the heavy rate of (14-18%).
In many cases the lender will finance the points.
Often times the lender will allow you to repay the loan when you sell the house or refiance. I hope this answers some of your questions

Safe investing
Graywolf

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Re: Direct Lender = Hard $ Lender? - Posted by Todd H.

Posted by Todd H. on January 26, 2002 at 23:12:30:

So if I understand you correctly, anytime a “hard money” lender asks for your credit history, they are NOT a true hard money lender? I was always under the belief that a hard money lender only cared about the equity in the home as long as it fell within the 60-65% of ARV.
With all this being said above, will Hard Money lenders finance points? If not, that can be aHUGE amount of moneythat the investor has to put up in the beginning ($100k home would be $7k for 7 points). How is that beneficial if you can not finance that into the loan? If they will let you include that, does it have to be included in the ARV ratio?
I am just beginning my rehab investing career and are fortunate to have excellent credit, a good credit score, good equity in my residence, and a VERY well paying job so I am not used to seeing 7-10 points and 15% interest. I do however, understand that the area that I am investing in requires this type of rates. My question then is, who is the best Hard Money Lender to someone who has excellent credit? Would convential lenders be an option and if so, what is their ARV ratio and rates?

Any suggestions???

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Re: Direct Lender = Hard $ Lender? - Posted by Tom_MI

Posted by Tom_MI on January 25, 2002 at 17:06:42:

So where might one find a “TRUE” Hard money lender? Everyone that I have talked to wants credit scores ect.