Posted by Bob (Md) on February 22, 2001 at 20:34:14:
I’m a consultant by trade. Many times, I will argue the view that’s contrary to the prevailing “groupthink”, just to surface the opposing view points. You may not actually learn my opinion until the final reports are written ;-).
Saves time and energy if you decide to change viewpoints midstream, too…
Working with realtors? - Posted by Josh MA
Posted by Josh MA on February 22, 2001 at 10:58:15:
Ok guys and Girls i have a question…when working with a Agent if they have a pretty house that i want would i be able to buy it outright with Hardmoney then turn around and L/O it for more then i paid for it since i’m giving terms on the place basically my question is would a Hardmoney Lender do something like this?
On a side note…I’ll be Moving to NJ shortly any NJ investors that want to get together and talk about the market there drop me a E-mail so we can talk…Thanks!
Re: Working with realtors? - Posted by Bob (Md)
Posted by Bob (Md) on February 23, 2001 at 11:26:58:
Since nobody answered the question, I’ll try. My understanding is that hard money lenders base their loan on the value of the property, but will only loan about 55-65% of the value. That means resell value in it’s current shape, which confused me initially.
If you’re not going to fix up the property, they will go 60-65% LTV based on current value (probably requires an appraisal). If you fix it up, they’ll loan up to 60-65% of the After Repaired Value (ARV). But, they’ll only release funds up to 65% of the current value. An example…let’s say the house was purchased for $20k, and you wanted to put $20k into it for repairs. The after-repair value would be $80k. The hard money lender will do a 65% loan (in this example).
They would loan a total of up to $52,000, based on the ARV. Initially, they would probably only release the $20k needed to buy the property and the rest would be escrowed. As repairs were completed, they would release funds based on their inspection that the repairs were completed to their satisfaction. This would happen in increments, until the repairs were all completed. The balance would then be released to you. Some lenders may require a 10-15% holdback for up to 90 days to ensure that the repairs were actually completed and there are no mechanics liens outstanding.
The big problem with hard money is that it’s expensive, and may come with a short-term ballooon. You might end up paying 15-16% interest, 4-5 points, and have the full balance come due in 1 year. Depends on the terms you negotiate with the lender. If you think you can handle the financing, I don’t see why you couldn’t use hard money to control a property while you were doing a L/O.
I hope this is useful information for you.
A self-fulfilling prophecy… - Posted by Ben (NJ)
Posted by Ben (NJ) on February 23, 2001 at 10:08:28:
(or something like that). I find it most revealing that out of the 14 posts on this topic, NOT ONE dealt with the substance of Josh’s post! This is ironclad proof of how distracting his presentation was to the gist of his post (I am not picking on you per se, Josh because God knows, I have seen much worse)but I felt this was worthy of pointing out.
Re: Working with realtors? - Posted by t jent
Posted by t jent on February 22, 2001 at 18:22:40:
Hope I don’t sound picky because it’s not the biggest issue in the world… but I agree with the post below. Careless spelling and punctuation are distracting and disrespectful to the reader. They make the post difficult to read. Not the occassional lapse; I mean the post that goes on as if correct spelling, grammar and punctuation were mere optional accessories to communication. They ARE communication. If one expects others to take the time to read, reflect on and respond to a post, he should then take the time to first proof read it for ready intelligibility.
Re: What happened to your English? - Posted by Wayne-NC
Posted by Wayne-NC on February 22, 2001 at 12:49:49:
Please read your question again. This time use the correct punctuation marks. Then maybe you will get a better response. I am not an english professor but I do deal with alot of business people with alot of money involved and they will not tolerate poor english skills. Especially on legal contracts. Typo’s are one thing but I am seeing a trend of poor english throughout this site. I hope this helps you as a businessman. Now concentrate on your real estate profession.
Re: Working with realtors? - Posted by James Harris
Posted by James Harris on February 22, 2001 at 11:27:45:
Yes, there are some hardmoney lenders that would work this way. They may be hard to find, especially if you are looking for a full price loan. Most hardmoney lenders only go 65% some may go 70% for one year. I have never really found a realtor who would even suggest that the seller agrees to such an offer. I would if possible talk to the owner directly, and make the deal with him/her.
That’s what I’m sayin’ (NT) - Posted by Ron (MD)
Posted by Ron (MD) on February 23, 2001 at 10:47:39:
nt
Sorry, couldn’t help myself… - Posted by Bob (Md)
Posted by Bob (Md) on February 22, 2001 at 16:51:05:
In response to Josh MA, you wrote:
“Please read your question again. This time use the correct punctuation marks. Then maybe you will get a better response. I am not an english professor but I do deal with alot of business people with alot of money involved and they will not tolerate poor english skills. Especially on legal contracts. Typo’s are one thing but I am seeing a trend of poor english throughout this site. I hope this helps you as a businessman. Now concentrate on your real estate profession.”
You may want to note the changes in the following corrected version of your text…
Please read your question again. This time, use the correct punctuation marks. Then, you may get a better response. I am not an English professor, but I do deal with a lot of business people with a lot of money involved. They will not tolerate poor English skills - especially on legal contracts. Typos are one thing, but I am seeing a trend of poor English throughout this site. I hope this helps you as a businessman. Now, concentrate on your real estate profession.
No big deal - mostly missing commas and capitals, a run-on sentence or two, and a misplaced apostrophe. Oh, and “alot” is two words. It’s the little things that count, don’t you agree? After all, the Devil is in the details.
I couldn’t resist, having gone back to college after laying out for over two decades. The punctuation and grammer are KILLING ME and I saw an opportunity to play professor ;-).
Re: What happened to your English? - Posted by Mark
Posted by Mark on February 22, 2001 at 14:15:56:
What happened to constuctive comments ?English class is in school r/e is here if you can’t offer help to the problem that is asked DON’T
Actually, it’s grammar, not grammer… - Posted by Ben (NJ)
Posted by Ben (NJ) on February 22, 2001 at 19:37:21:
(couldn’t resist either). Three years ago one of my first posts on this site was a reply to someone who was denouncing the need for formal education in our highly competitive society. Ironically, his spelling and grammar were atrocious. I made many of the same points Ron has made here but surprisingly, I got my head handed to me by many people who felt my comments were “trivial and trite”. (Yes, I was an English major
and also a law review editor, which may explain my anal
retentive nature!) LOL. Just reminiscing.
Re: What happened to your English? - Posted by Josh MA
Posted by Josh MA on February 22, 2001 at 15:34:56:
Exactly what i was thinking LOL but was’nt gonna say it cause i thought it would be too mean so i kept my mouth shut…I myself am a Perfect Punctuator when it comes to my contracts and what Not So sue me if i get lazy on a Message board and dont dot my i’s or cross my T’s…
Happy Investing
Josh MA
Actually, Ben… - Posted by Ron (MD)
Posted by Ron (MD) on February 22, 2001 at 20:07:19:
I do expect to get criticized for my post. It disagrees with our culture in general, as well as the run-and-gun sort of mentality often reflected here.
Frankly, I prefer to post an alternative, yet valid, viewpoint. In this case, I’m reminded of the old saw that observes that, as we get older, our parents seem to mysteriously get wiser.
Ron Guy
Ouch! - Posted by Bob (Md)
Posted by Bob (Md) on February 22, 2001 at 19:41:37:
Glass houses and all, eh?
Re: What happened to your English? - Posted by John
Posted by John on February 23, 2001 at 24:54:30:
By the way the saying goes “God is in the details”.