This was some great insight. My question is about Hard Money. How easy is it to get started with a hard money lender? Also, when using hard money, how much (percentage) were you required to use out of pocket? or were you able to use the equity created in the ARV to reduce or eliminate this issue. trying to get started in the Midwest. Thanks.
Great questions Steve! It’s also one that can have many different answers because each Hard Money lender will have their own lending guidelines & requirements. Generally they will want to see that you have some money in reserves, or access to some money (partners?) so that you don’t get yourself in trouble. Some may also run credit but aren’t as strict about this as traditional lenders. The application process usually isn’t that bad at all. As far as what they’ll lend…I can tell you that typically (at least in Southern California) a hard money lender will want you to have some skin in the game no matter how low your price is. Some will lend based on a percentage of their estimated ARV (After Repair Value), and some will lend based on a percentage of the purchase price. Either way, you will likely need some of your own cash to close the deal and make the repairs. There are many programs out there though. Some that will actually fund your rehab too, with draws based on your progress during the fix-up. The average lender around here will lend up to around 65-70% of the ARV of the property minus the repair costs. Some higher, some lower, just depends. Hope that helps!
This is an interesting and informative post. I however, don’t feel comfortable borrowing money from family and friends. I certainly agree that if you are self employed it be a big challenge getting a loan from a bank.
If you want to sell your property try listing it here http://www.regrid.us
All registered users can have one free listing and all visitors to the site can view all of this listings.
Doug & Andrea Van Soest, thank you for this informative audio. There are some golden nuggets such as crowd sourcing which has become increasingly popular. There are some tips that may be unusual for new and experienced users but overall great piece.
Richard
“Hi Guys, I saw these awesome apartments in the middle of a forest just behind Infosys Mysore. This is nature lover’s heaven within Mysore city.
Check it out, you will be impressed :
DAH Greentech Group is coming up with a project of 25 acres in Noida Extension by the name of NX–ONE, Greater Noida West. The project is just 500 meters away from proposed metro station! At NX One, we offers commercial spaces including retail space, office space, clubs, food courts and much more. The project beholds a international planning and construction too. With all sort of modern facilities, this project marks its upfront in putting forward redefined future with 3G lifestyle. NX One is sited plot no 17 of sector Tech Zone 4 of Gr. Noida West, just 500 meters from Gaur City. The project is located in heart of Noida Extension and principally considered as one of the best and lucrative project of NCR. The project has housing units, hyper market, commercial complex, and multiplex, office complex for IT & corporate. The project is expected to be launched officially very soon. DAH Group constructs with conscience. DAH Greentech Group signifies the essence of luxury, integrated with highest quality and understated opulence. For NX Corporate suites, we proudly announce 7% assured lease guarantee, we will soon announce the name of Hospitality Gaint. For more information please click here: http://www.nxonenoidaextension.org.in
Glad I found this Podcast in website. Have utilized a few of these and have been extremely satisfied. My challenge is always finding juicy deals with low risk.Knowing how to finance them when I do find them is key because I often find 2 or 3 at the same time
Very useful and encouraging article; after 5 years working as a real estate photographer and observing agents, I myself have become interested in investing.
I just came across this post and I found this very helpful. This will surely save us from a lot of worries when it comes to financing our projects. Thanks a lot!
This was some great insight. My question is about Hard Money. How easy is it to get started with a hard money lender? Also, when using hard money, how much (percentage) were you required to use out of pocket? or were you able to use the equity created in the ARV to reduce or eliminate this issue. trying to get started in the Midwest. Thanks.
Great questions Steve! It’s also one that can have many different answers because each Hard Money lender will have their own lending guidelines & requirements. Generally they will want to see that you have some money in reserves, or access to some money (partners?) so that you don’t get yourself in trouble. Some may also run credit but aren’t as strict about this as traditional lenders. The application process usually isn’t that bad at all. As far as what they’ll lend…I can tell you that typically (at least in Southern California) a hard money lender will want you to have some skin in the game no matter how low your price is. Some will lend based on a percentage of their estimated ARV (After Repair Value), and some will lend based on a percentage of the purchase price. Either way, you will likely need some of your own cash to close the deal and make the repairs. There are many programs out there though. Some that will actually fund your rehab too, with draws based on your progress during the fix-up. The average lender around here will lend up to around 65-70% of the ARV of the property minus the repair costs. Some higher, some lower, just depends. Hope that helps!
Hello Doug & Andrea,
These are really good insight.
Indeed they are some of the great tips from where we could gets funds for our projects.
Hard money lenders is something I got to learn here.
How do they work? What are the interest that are being charged by them.
This is new, Crowd funding. What is the criteria for activating this one.
Hope you come out to get dealt with this one in your next post.
Thank you.
Shantanu sinha
It is packed full of useful information for everyone. Thanks Doug & Andrea Van Soest
Thank you! 🙂
Thank you for the information.
This is an interesting and informative post. I however, don’t feel comfortable borrowing money from family and friends. I certainly agree that if you are self employed it be a big challenge getting a loan from a bank.
If you want to sell your property try listing it here http://www.regrid.us
All registered users can have one free listing and all visitors to the site can view all of this listings.
Doug & Andrea Van Soest, thank you for this informative audio. There are some golden nuggets such as crowd sourcing which has become increasingly popular. There are some tips that may be unusual for new and experienced users but overall great piece.
Richard
Much needed information.. Thanks for sharing… Really helpful. Informative and well detailed. Waiting for more of yours.
Great post! I am an investor in westport, CT and I found your discussion very helpful. Thanks.
“Hi Guys, I saw these awesome apartments in the middle of a forest just behind Infosys Mysore. This is nature lover’s heaven within Mysore city.
Check it out, you will be impressed :
DAH Greentech Group is coming up with a project of 25 acres in Noida Extension by the name of NX–ONE, Greater Noida West. The project is just 500 meters away from proposed metro station! At NX One, we offers commercial spaces including retail space, office space, clubs, food courts and much more. The project beholds a international planning and construction too. With all sort of modern facilities, this project marks its upfront in putting forward redefined future with 3G lifestyle. NX One is sited plot no 17 of sector Tech Zone 4 of Gr. Noida West, just 500 meters from Gaur City. The project is located in heart of Noida Extension and principally considered as one of the best and lucrative project of NCR. The project has housing units, hyper market, commercial complex, and multiplex, office complex for IT & corporate. The project is expected to be launched officially very soon. DAH Group constructs with conscience. DAH Greentech Group signifies the essence of luxury, integrated with highest quality and understated opulence. For NX Corporate suites, we proudly announce 7% assured lease guarantee, we will soon announce the name of Hospitality Gaint. For more information please click here: http://www.nxonenoidaextension.org.in
Glad I found this Podcast in website. Have utilized a few of these and have been extremely satisfied. My challenge is always finding juicy deals with low risk.Knowing how to finance them when I do find them is key because I often find 2 or 3 at the same time
Very useful and encouraging article; after 5 years working as a real estate photographer and observing agents, I myself have become interested in investing.
I just came across this post and I found this very helpful. This will surely save us from a lot of worries when it comes to financing our projects. Thanks a lot!