Welcome to Frequently Asked Questions

No. Once you have submitted your application and paid the evaluation fee, we send the evaluators out within 24 hours of submittal. The money is gone after that point. The fee is for independent evaluations to be done on the property. We cannot waive this fee or get around it. We have to get the independent evaluations done. Until the evaluations are done we cannot make any commitment on the loan. We recommend that you have the property under contract before you do a full application and put money into the evaluations. If you do not have the properties under contract you can use our Instant deal evaluation that will give you a very close range of how much we will lend based upon what you believe the property Is worth and the amount of repairs the property needs. Please keep in mind, that it isn`t often that we have to deny a loan. Usually what happens, is we get back with the investor and let them know what we can lend and then THEY decide they don`t want to go through with the loan. We can finance 100% of your loan if you do the due diligence and pay what the property is REALLY worth. That is very difficult for someone to determine when they are new to investing. So, often times, we give them a loan amount and when they have to come down with money, they don`t want to continue. We highly suggest, if you are unsure whether you are paying what you should for the property, to utilize the tools we have to assist with this. One of those tools is the Estimated Value Report. This report, is computer generated, so it will be unbiased in its opinion. It will return a value to you within 15%, plus or minus on the properties worth. This will give you leverage when putting in an offer to purchase a property as you will then know if the price you are setting is a good deal or not. We look forward to working with you.

 

Foreclosure/Auction laws vary from State to State. We don’t keep up on the foreclosure/auction laws for each of the states. If you are able to meet the following circumstances then we would be happy to provide funding. If you are the successful bidder: Standard process is 10 business days. If you choose to expedite the order it could be down as fast as 72 hours to determine a value and an additional 48 business hours from the time we receive all conditions. If the time frames from the successful bidder work based upon the laws of your state we are more than happy to provide funding. In addition you will have to provide the following closing conditions. Trustee’s Deed or Verification of Successful Bidder 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.) Closing Protection Letter from the title company. Mortgagee Clause – DoHardMoney.com – 1078 East 3300 South – Salt Lake City, UT 84106 (no loan number required) Wire instructions for funding. This is provided by the title company or closing attorney Evidence of insurance on the property with vacant dwelling coverage for a minimum of 6 months (includes 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. 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. If you are able to meet the above we are more than happy to provide financing. If your state doesn’t allow for this type of time frame then unfortunately we can’t fund your loan.

 

We do look at depreciation as a factor. I think as a Real Estate Investor you have to; to be successful. We basically look if the area has more than 11% depreciation in the past year we will still loan on the property; but we will bring down the difference to the 11% in what the depreciation is in the past year. For example, if there is 18% depreciation last year, we will allow 11% so we will subtract 7% off what we wil be able to loan. So, if we will be able to loan at 70% loan to value, we will subtract the 7% off of the 70% and we will lend at 63% loan to value on a 6 month loan.

 

Yes, you can purchase a property and resell it without doing any rehab. You just have to make sure you are buying it right because if you are not doing any rehab the value will be based on an As Is Value. In that case you may be required to put some money down just depends on how good the purchase price is. Good luck.

 

For Unique Properties you take the After Repair Value minus the Cost of Repairs; we call this Adjusted After Repair Value (AARV): If the property is $60,000 or more we lend 50% AARV If the property is $59,999 or less we lend 35% AARV We are frequently asked how we determine After Repaired Value. It is very simple. We look at the lowest comparable that is fixed up in good condition in the immediate area that is sold, and we also look at the lowest active in the immediate area that is in good condition. We then use the lower of these two. Basically Solds tell the history and Actives show the future.

 

Unique Properties are properties with 900 square feet or less, properties with less than 2 beds, on or near a commercial corridor, around or across from rail road tracks or major street, road, highway and / or freeway system.

 

No, we do not require reserves. However, when you are doing your due diligence on the property, if we find that we offer the loan to you and the difference in what we offer versus what you are buying the property for would require you to put some money down, then we would request a proof of funds.

 

No we do not have a seasoning time frame. Of course we will look at the previous buyer (now seller) purchase price and the now purchase price if no work has been done. Hope that helps.

 

No.& Title insurance is insurance that the title on the property is clear except for the lien that DoHardMoney will have on the property upon closing.& Vacant dwelling insurance (Hazard Insurance) is insurance on the property if anything should happen to it plus coverage for vandalism and damage if that would occur during the time that DoHardMoney has their loan out.

 

No, there is no pre-payment penalty. If you pay the loan back faster, you will be prorated for interest but points are a set fee. Basically, when you take the loan out you have the right to keep the money out for that period of time. So there are no refunds on points if paid off early but no pre-payment penalty either.