Just got this response through the contact us form on my website:
“I was formerly a subscriber to the monthly membership program (about a year ago) and what stopped me was the $400 fee for an evaluation of the property I wanted to purchase. It wouldn’t take more than a few of these that didn’t work out for me to be out of money for good.
I’ve just watched the video for the new real estate investor training program, and it seems this is a do-it-for-me system. So I have several questions: do you find the properties? Do I still have to pay for an evaluation before you will fund it, if your expert is doing the finding?
Why do you need me in the deal at all? Who takes the loss, if any, if your expert is wrong? Don’t get me wrong, I am very serious about finding a way to invest in real estate, but I have already bankrupted myself and husband, and we have no resources left to lose. I can pay for your program for maybe six months, before I must make a profit or be done forever.
What do you say?”
Thanks for your past membership and your interest in the new one. Let’s cut straight to the chase and knock out your questions one at a time.
Part of the Real Estate Millions Diamond Program is our Property Concierge service. What we do is connect you with a local property specialist, usually a real estate agent that specializes in finding investment properties.
This person is independent and is not employed by DoHardMoney.com. What he or she will do is find properties that meet the criteria you want in an investment and bring them to you to look at. This way you don’t have to research and find the properties yourself.
The Property Concierge does NOT evaluate the property for the after repaired value (ARV) or rehab costs that we use to make a lending decision. Why? Because we can’t have a person who is trying to sell you a home for a commission also determining the ARV and rehab costs. It’s a conflict of interest and we need to be fully objective in how we evaluate a property for lending purposes.
Now your Property Concierge should be helping you to look at comps that will help you to get a good idea of what the ARV and rehab costs will be. This will allow you to be pretty darn close to what the evaluator determines when we send him or her out.
If you do this properly, you don’t have to worry about paying the evaluation fee and the numbers coming back different – causing us to not be able to fund the loan.
If for some reason this does occur we will give you a coupon for a $750 rebate off origination points from the next loan you actually do close. This will allow you to recoup the costs of the evaluation fees from the loan application we couldn’t fund, plus you’ll get some back off the evaluation fees you paid on the loan application we did fund.
So yes, even as a Diamond member you do have to pay the evaluation fees. These fees go directly to pay the independent evaluators that we send out to the property. Sometimes we’ll even have to order an appraisal. The bottom line is that we don’t make money on evaluation fees.
Cheryl, the reason you need to be in the deal is that it’s your deal. We could easily be just doing deals by ourselves and make all the profit for ourselves. Why should we do all the work, take all the risk and then split the profit with you?
This partnership program is sort of like franchising out our business. You do some work (with our help) and shoulder some of the risk. A partnership doesn’t exist if it’s only one person or side doing everything.
We only have so much time and resources to go out looking for properties and doing deals ourselves, so by recruiting members and training them to help with that and then splitting profits, it becomes a good thing for everybody.
I think your part about “taking the loss if your expert is wrong” is in reference to the evaluation fees. I believe that I’ve addressed that in previous sections, but let’s take another angle here just to be clear.
The evaluation fees are your responsibility. We get over 150 loan applications every month, many of which are from people that “just want to see what we’ll finance”. If we didn’t pass on the expense of the evaluation fees to the applicants, we’d go out of business in a month.
By using a Property Concierge, it does not guarantee that we can fund a deal on a particular property for you. It’s a checks and balances thing where we still have to do our due diligence. Accepting the potential for loss on the evaluation fee is one of the few responsibilities you’d have if you took part in this program.
Knowing your situation, I think it would make more sense for you to get back on your feet financially a bit more first, but if you want to take one last stab at investing using our real estate investor training and partnership program, you can sign up at the link below: