Hard money lenders - Posted by Shenesa

Real Estate Investing Real Estate Financing
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Posted by CarolFL on May 30, 2000 at 19:22:35:

and let me add to Stacy’s post that they vary on what they will lend ( purchase money, purchase + rehab, etc etc) and what they charge for it. HOWEVER the one unwavering element is - as STacy said - they are EQUITY BASED … interested only in the house as collateral … and you and your performance simply can make the relationship better as time goes on - not make the deal.

Happy hunting.
Carol

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Hard money lenders - Posted by Shenesa

Posted by Shenesa on May 30, 2000 at 12:58:54:

Can someone please answer how does hard money lenders work and what do they require?

Thanks,
Shenesa,NY

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Re: Hard money lenders - Posted by Lori Samson

Posted by Lori Samson on May 30, 2000 at 13:33:40:

I am having a little hard time in hard money loans as interest rates go up. It can be difficult to borrow anything but 80% of the price you paid for the property. A lot of lenders don’t want to let you have any cash out unless you have held it for a year. I have just lease optioned one that I was trying to get hard money on. It had private money that I bought it with and now that I have made the repairs and had it appraise I wanted to borrow at the appraised 82,ooo. I borrowed 55K of private money I would have liked to refinance 80% of the appraised value but I was really having a hard time finding hard money because I haven’t had it a year. You will really need to shop for your money. Be careful of any loan you get that they don’t pull the bait and switch on you at closing. Make sure they give you what they are telling you or you will end up at closing with something totally different.
(NOTE: ED GARCIA… give her some advice and refrain from slamming anything I say negative to your industry. She needs help not the negativity to me!)

Lori

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Re: Hard money lenders - Posted by Stacy (AZ)

Posted by Stacy (AZ) on May 30, 2000 at 13:53:42:

Lori, I think you may be speaking of something other than hard money. It’s very unusual for a hard money lender to go to 80%. Usually they’re in the 60% to 65% range.

Just so we’re clear, it’s an equity based lender who is more concerned about the property and the LTV than the credit of the borrower.

Stacy