OfflineHi All,
I am a new investor with no cash reserves and i am trying to get a hard money loan. I am getting negative feed back from the companies i am calling due to the lack of cash reserves. Anyone give me help as far as a way around this problem?
Thanks
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What are the funds being used for? Most HML companies only comitt funds for double closings on the same day.
Are you looking to flip,purchase from a wholesaler?
Need more info on what you need the funds for...Jan
Hi Jan,
Need the funds to purchase rehab and then flip. I might also purchase a turn key rental with positive cash flow and equity and then refinance. The HML's are saying i need to have at least 15% of the total project size in cash reserves.
Hi Jan,
Need the funds to purchase rehab and then flip. I might also purchase a turn key rental with positive cash flow and equity and then refinance. The HML's are saying i need to have at least 15% of the total project size in cash reserves.
Louise
Well most HML's require a quick turn around to get their money back, but there are some out there who will go as far as 6 months and then you repay. I might add that most of them have a steep % for repay and their closing costs are higher than most conventional avenues. If you can refi after 6 months on your flip or sell it in that time period, it might be a deal.
Try going to the front page here, top left corner. Type in the white box hard money and hit enter. This should bring you to many posts about hard money lenders and their info. Hope this helps...Jan
I received this great article today in my inbox! I thought I would share it. I have never used a hard money loan but it gives a great insight on what the HML's are looking for.
Click on the link below.
http://www.creonline.com/articles/art-389.html