Welcome to Frequently Asked Questions

For example - Let's start with a note amount (loan amount plus points/origination fees) of $100,000 at an interest rate of 15%.  For the first month you would multiply the note amount times the interest rate which gives you the annual amount of the interest.  You then divide this amount by 12 (for the months) to get a 30 day interest amount. $100,000 X 15% = $15,000 of annual interest.  Then take the $15,000 and divide by 12 which gives you $1,250 for the first months interest.  The amount then gets added to the initial note amount of $100,000 for a new loan balance of $101,250.  Then for the next month you will multiply the new balance of $101,250 X 15% = $15,187.50.  Then divide again the $15,187.50 by 12 which gives you $1,265.63 for interest for the 2nd month of the loan.  This again gets added to the loan balance for a new balance now of $102,515.63 to calculate interest for the next month This continues through the term of the loan or until the loan is paid off.  You are only charged interest for the time that the loan is on the books with DHM.  If you pay off ahead of the initial due date you only pay interest for that time.  There is no prepayment penalty.

 

DHM offers financing for real estate investors who primarily are purchasing a property to rehab and resell.  The loans are short term with a maximum initial term of 5 months and the option of 3 extensions (with the extensions approved at the sole discretion of DHM).  DHM does NOT offer long term financing.   We will do loans to investors that are purchasing a property to rehab and keep as a rental.  The one thing to remember and be aware of is that in order to payoff the loan to DoHardMoney.com on time you need to be able to qualify for long term conventional financing.  In today's market financing for investment properties is very difficult to obtain due to the very stringent lending guidelines.  We recommend you get pre-approved for the long term financing prior to purchasing the property.

 

We report if at the end of the term the loan is not paid off and we have to foreclose on the property.

 

1. First find a property. If you are buying from a bank (or a short sale), you MUST have bank approval with a BPO (Bank Purchase Opinion). 2. Complete the online application form and property sheets. 3. Complete online, or email the purchase contract, signed acknowledgments and authorization disclosures, and legible copy of driver`s license. We will call you within 2-4 business days of getting your application to approve the loan. After the property has been approved and we have all required paperwork, we can close within  48 hours.

 

The answer to the question depends on the real estate investors. We have some clients that do not make the offer subject to financing. These investors are so confident in their value of the property that they are not concerned about getting financing. They know that they will be able to get financing and in some cases these investors have some capital sitting on the side lines just in case they have to come up with a few dollars to make the deal happen. Typically these investors are more experienced. Other investors make their offers subject to financing. This way the investor will not lose their earnest money if the deal does not get funding. However, you have to be aware that a seller will be more interested in an offer that is not subject to financing because it shows you are more confident as a real estate investor. Also talk with your real estate agent, your attorney, and other investors to decide what the best thing is for you given all your circumstances.

 

Great question. We primarily put our judgment into the property when we come up with the lending decision. We do pull your credit to make sure there are no open bankruptcies or bankruptcies discharged in the last 12 months, open unpaid judgments, open unpaid state and/or federal tax liens or any other public records that could affect title. We will not lend to someone that has open bankruptcies or bankruptcies discharged in the last 12 months, open unpaid judgments, open unpaid state and/or federal tax liens or any other public records that could affect title.  If everything has been resolved with the creditors we will lend to the borrower. We won`t deny someone based on credit scores. However the scores don`t determine if we will lend or not. Credit scores below 620 do have slightly higher pricing when you get the loan. But we will give you the loan regardless of what your credit scores are.

 

If you do not have a property under contract and have questions due to the time sensitivity of our business it is nearly impossible to answer all questions over the phone. We do want to provide first class customer service so we have established a FAQ section on our web site that can answer all your questions. In fact if your question is not answered you can submit it and we will give you a $100 Wal-Mart Rebate Card. Or you can email us directly at info@dohardmoney.com Happy Investing

 

If you have the property under contract you will want to submit a loan application by going to www.dohardmoney.com then the Apply for Loan tab. Also if you have a property under contract you can call us at 800-284-0076 you will select option 7. This will connect you with a Portfolio Manager that can help you out.

 

Do you currently have a property under contract? If you have the property under contract you will want to submit a loan application by going to www.dohardmoney.com. Also if you have a property under contract you can call us at 800-284-0076 you will hit option 1. This will connect you with a Portfolio Manager that can help you out. If you do not have a property under contract and have questions due to the time sensitivity of our business it is nearly impossible to answer all questions over the phone. We do want to provide first class customer service so we have established a FAQ section on our web site that can answer all your questions. In fact if your question is not answered you can submit it and we will give you a $100 Wal-Mart Rebate Card. Or you can email us directly at info@dohardmoney.com Happy Investing

 

We lend using the After Repaired Value of the property. We take what the property will be worth after it is fixed up as determined by independent evaluations.   Single Family Detached. 70% maximum of After Repair Value - includes the rehab funds as established by the independent evaluators (see Profit Analysis based on ARV under Terms, Fee and LTV tab) 70% maximum** of As Is (if no repair work is being done to the home) - See Profit Analysis basedd on ARV under Terms, Fee and LTV tab   Attached Single Family (ie:  condo, townhome, rowhome, loft) 60% maximum of After Repair Value - includes the rehab funds as established by the independent evaluators (see Profit Analysis based on ARV under Terms, Fee and LTV tab) 60% maximum** of As Is (if no repair work is being done to the home) - See Profit Analysis based on ARV under Terms, Fee and LTV tab **If the property is a condo, Townhome, Twinhome, Rowhome or Loft we require that all active and sold comparables are within the same complex.