Welcome to Frequently Asked Questions

Yes.  The maximum amount allowed for rehab funds is $50,000.  DHM is a rehab lender and any amount higher would be considered more of a construction loan.  DHM is not a construction lender.

 

Yes.  The maximum amount allowed for rehab funds is $50,000.  DHM is a rehab lender and any amount higher would be considered more of a construction loan.  DHM is not a construction lender.

 

No.  DoHardMoney.com will not fund on any rehab work based on the independent evaluations that is greater than $50,000.  When there is this much work to be done it will take longer to complete the work which shortens the marketing time for the property.  With a shorter marketing time there is a greater risk of not being able to pay the loan off by the due date.  Typically when rehab costs are greater than $50,000 there is major structural issues and DHM will not fund on structural items.  DHM will not fund on any properties that are having conversions completed.  Examples of this would be converting a duplex to a single family or adding an extra bedroom, bath, addition etc.  These types of items can become a large project that initially projected.  DHM only funds on properties that need cosmetic rehab and will not lend on any properties that have major rehab over $50,000 or being converted in some fashion.  There are no exceptions to the guidelines in this area.

 

Yes, there is a cost but there is also a greater benefit to using the program.  COST : Cost 50% of profit per deal for the property. BENEFITS : 1. We will lend you repair money 2. We will walk you through the ENTIRE process The bottom line is we want you to be successful, and we want you to make money. We have seen so many real estate investors try and do deals and end up losing money, getting foreclosed on and having this haunt them for the rest of their lives. The crazy thing is we believe that most if not all of these properties could have been profitable if the borrowers would have had more knowledge. That is where our partner with a Pro Program came about, and experienced real estate investors will work with virtually on every aspect.

 

1. Copy of fully executed purchase contract. If it is a short sale or bank owned property it must have bank approval of the sale. 2. Preliminary Title Report from the title company and/or closing attorney. Mortgagee Clause -DoHardMoney.com Its Successors and/or Assigns (This will be provided by you and in some cases we will provide through the title company of our choice). A 24 month Chain of Title MUST be included. The estimated loan amount for the title report can be the purchase price. The actual title insurance amount will be determined at closing. 3. Closing Protection Letter from the title company. Mortgagee Clause - DoHardMoney.com - 1078 East 3300 South - Salt Lake City, UT 84106 (no loan number required) 4. Wire instructions for funding. This is provided by the title company or closing attorney. 5. Evidence of Insurance on the property with vacant dwelling coverage for a minimum of 6 months (include agents name, address, phone number and email address) You will need to contact an independent insurance agent to obtain as most homeowner insurance companies do not offer this type of insurance. Coverage has to equal the loan amount with points at the minimum. Mortgagee Clause – DoHardMoney.com – Its Successors and/or Assigns – 1078 East 3300 South – Salt Lake City, UT 84106 6. If the loan is being closed in a company name then provide copies of the organization papers. Please be aware that all signers for the company will be required to sign as Personal Guarantors on the loan documents. 7. If the borrower is required to bring in the difference between purchase price and loan amount; these funds must be deposited to closing agent prior to docs and funding wire being sent. 8. Provide verification of funds to complete the estimated rehab costs. This means you have a plan of action and are prepared for success. 9. Completed the Personal Information and Authorization form on this link –http://www.dohardmoney.com/esign/ - You will receive an email from Echosign which requires you to follow through the confirmation process. Once this is done then the information will be released to DHM. This is done for your privacy and security. 10. For Experienced Rehabbers ONLY! You will be need to provide copies of the executed HUD Settlement Statements at the time you purchased the property. You will also need to provide copied of the corresponding executed HUD Settlement Statements at the time the property was sold. DHM will review to determine that you made a profit on the property. A minimum of 3 transactions within an 18 month period of time is required for an experience status. If you a new rehabber or have done less than 3 transaction in the previous 18 months this is not applicable

 

Partner with a Pro is a program designed for New Real Estate Investors. Can you imagine what it would be like to have a Professional Rehabber working with you virtually hand in hand from getting you loan closed to estimated repair bids, to finding contractors, choosing what work to do what work not to do, getting the work completed on the property, getting the property listed and sold and So, So much more. Once you have a property under contract and approved for funding, you will receive a seasoned real estate investor guide, which will guide you through the transaction from beginning to end; 1. Inspecting the property 2. Repair Plan on the property. What to do and what not to do 3. Finding Workers 4. Repair Bid 5. Contracts with Contractors 6. Holding Contractors accountable 7. Finding new Last minute when one flakes out 8. Closing the property 9. Getting the work started 10. Making sure the work gets done right 11. Last minute Details 12. Staging the home the Cheep way 13. Review the price of the home to sell 14. Selecting the right agent and listing the home 15. Price Reductions 16. Negotiating and accepting offers 17. Checking out the buyer to make sure they are really qualified 18. Buyer inspections concerns 19. Closing the property You will have weekly phone calls until the property is completed and bi weekly phone calls once the property is fixed up until the property is sold. You will also have email access to get questions answered between your phone calls. COST : Cost 50% of profit per deal for the property. BENEFITS : 1. We will lend you repair money 2. We will walk you through the ENTIRE process The bottom line is we want you to be successful, and we want you to make money. We have seen so many real estate investors try and do deals and end up losing money, getting foreclosed on and having this haunt them for the rest of their lives. The crazy thing is we believe that most if not all of these properties could have been profitable if the borrowers would have had more knowledge. That is where our partner with a Pro Program came about, and experienced real estate investors will work with virtually on every aspect.

 

We do not have credit score requirements. If you have great credit you get a discount on fees over a minimum of 620. DoHardMoney.com lends based on the property not based on the borrower. That being said DoHardMoney.com will not lend to borrowers that have any of the following; 1. Current open Bankruptcy or bankruptcy discharged in the last 12 months 2. Open or unpaid judgments 3. Open or unpaid state or federal tax liens 4. Any other public records reported on the credit report

 

Not a problem. You are not required to participate in Partner with a Pro if you are a new rehabber but remember the  BENEFITS : We will walk you through the ENTIRE process The bottom line is we want you to be successful, and we want you to make money. We have seen so many real estate investors try and do deals and end up losing money, getting foreclosed on and having this haunt them for the rest of their lives. The crazy thing is we believe that most if not all of these properties could have been profitable if the borrowers would have had more knowledge. That is where our partner with a Pro Program came about, and experienced real estate investors will work with virtually on every aspect.

 

Draw Time. The borrower will be required to spend the original 25% and have 25% of the work completed on the home. The borrower will then submit copies of the paid receipts. An inspection will be required and completed on the property to insure the work is complete. Time Frame for Draws. The borrower will need to submit receipts for all funds spend. In addition the borrower will make a request and an evaluator/estimator will be sent to the property and complete a report. In addition a Partner with a Pro Program (if applicable) call will need to be made once the report is completed. This process can be as short as 5 days and as long as 10 days. Once the report and the phone call with a pro is recived draws happen on Tuesdays and Thursdays. So any reports received prior to Tuesday will have checks cut that day. Borrower can have a check sent or funds deposited through ACH.

 

$150 will be taken out every time a draw request and inspection is made. This fee will be taken out of the money set aside for repair funds. This fee applies to any and all loans no matter whether you are a new rehabber or experienced investor. Keep in mind that if the repairs are not completed on the property when an inspection is requested an additional inspection will be ordered and an additional inspection fee of $150 will be taken out of the repair funds.