Residential Hard Money

 

General Info


DoHardMoney.com was founded by real estate investors for real estate investors. Having come from the real estate investing background DoHardMoney.com is well aware of the needs of a real estate investor. Most Hard Money lenders come from the lending, banking of Hedge Fund background. There is an old saying that says “You don’t know, what you don’t know”. I think this applies to many Hard Money Lenders.

DoHardMoney.com has been criticized for our lending practices. The most attacked of these practices are

 

  • The borrower does not have to put any money down
  • We will fund up to 100% of the purchase price
  • No monthly payments from the borrower
  • Our points get paid when you payoff the loan
  • It takes us 48 hours to complete our process but we are waiting on evaluations, title reports, and many other factors and it takes typically 4-7 days for those to get into our hands and then we can finish it.

 

Other Hard Money lenders that come from the banking world believe that a borrower has to put their own money down to be committed to a property. But let’s take a deeper look at this. Let’s talk about the following two borrowers; Borrower A and Borrower B

Borrower A goes to “the other Hard Money Lender”

After Repaired Value $150,000
Fix Up Cost $10,000
Borrower A Purchase Price $98,000
Lender Makes Borrower A put down payment of $8,000
Loan is for $90,000

Borrower B comes to DoHardMoney.com

After Repaired Value $150,000
Fix Up Cost $10,000
Borrower A Purchase Price $90,000
Lender Makes Borrower B put down payment of $0
Loan is for $90,000

What is the difference in these two examples? The loan amount is the exact same. The difference is that borrower B plan just got a better deal on the purchase. The reality is the amount of money that the borrower puts down has zero impact on the purchase price. DoHardMoney.com looks at the purchase price compared to the after repaired value of the property and lends base on the value.