Hard-money loan?

[garysears]

I investigated hard money lending somewhat seriously for myself in early 2010. The quote you need to remember is hard money lenders “loan to own”.

That is, hard money lenders expect either to get paid back quickly (thus the high points charged) or they expect to make money by foreclosing and taking your down payment (thus the high down payment). As stated above the risk is mitigated almost entirely by the % down payment required which will be the equity the hard money owner is comfortable having in the property if you can’t make the payments.

After my escrow fell through 6 months ago I’ve been content to wait another 1-2 years to see if the low end prices come back from the tax credit bounce. It is starting to look OK this fall but the spring bounce is right around the corner 🙁

[Anonymous]

We do refinancing of trustee sale purchases in SD, LA, OC and the IE. We do not give people cashier’s checks to purchase at the trustee sale and surprised to hear other hard money lenders doing that and willing to take that risk.

It’s increasingly competitive and investors really have to know what they’re doing. Even experienced pros make mistakes and not entirely due to their own fault (e.g. old title company didn’t record correctly, city put a lien on house that hadn’t recorded yet, squatter snuck in an wrote up a fake lease agreement, etc.)

Every hard money lender is different. We loan on the after repair value. Until we can be sure we have a deed of trust and can have an appraiser out to fully understand value, we wouldn’t be able to do a loan.

We do refis at 3.5, 12.5%, no prepay, one year term. We close 30-40 per month and growing.

[Anonymous]

We do refinancing of trustee sale purchases in SD, LA, OC and the IE. We do not give people cashier’s checks to purchase at the trustee sale and surprised to hear other hard money lenders doing that and willing to take that risk.

It’s increasingly competitive and investors really have to know what they’re doing. Even experienced pros make mistakes and not entirely due to their own fault (e.g. old title company didn’t record correctly, city put a lien on house that hadn’t recorded yet, squatter snuck in an wrote up a fake lease agreement, etc.)

Every hard money lender is different. We loan on the after repair value. Until we can be sure we have a deed of trust and can have an appraiser out to fully understand value, we wouldn’t be able to do a loan.

We do refis at 3.5, 12.5%, no prepay, one year term. We close 30-40 per month and growing.

[Anonymous]

We do refinancing of trustee sale purchases in SD, LA, OC and the IE. We do not give people cashier’s checks to purchase at the trustee sale and surprised to hear other hard money lenders doing that and willing to take that risk.

It’s increasingly competitive and investors really have to know what they’re doing. Even experienced pros make mistakes and not entirely due to their own fault (e.g. old title company didn’t record correctly, city put a lien on house that hadn’t recorded yet, squatter snuck in an wrote up a fake lease agreement, etc.)

Every hard money lender is different. We loan on the after repair value. Until we can be sure we have a deed of trust and can have an appraiser out to fully understand value, we wouldn’t be able to do a loan.

We do refis at 3.5, 12.5%, no prepay, one year term. We close 30-40 per month and growing.

[Anonymous]

We do refinancing of trustee sale purchases in SD, LA, OC and the IE. We do not give people cashier’s checks to purchase at the trustee sale and surprised to hear other hard money lenders doing that and willing to take that risk.

It’s increasingly competitive and investors really have to know what they’re doing. Even experienced pros make mistakes and not entirely due to their own fault (e.g. old title company didn’t record correctly, city put a lien on house that hadn’t recorded yet, squatter snuck in an wrote up a fake lease agreement, etc.)

Every hard money lender is different. We loan on the after repair value. Until we can be sure we have a deed of trust and can have an appraiser out to fully understand value, we wouldn’t be able to do a loan.

We do refis at 3.5, 12.5%, no prepay, one year term. We close 30-40 per month and growing.

[Anonymous]

We do refinancing of trustee sale purchases in SD, LA, OC and the IE. We do not give people cashier’s checks to purchase at the trustee sale and surprised to hear other hard money lenders doing that and willing to take that risk.

It’s increasingly competitive and investors really have to know what they’re doing. Even experienced pros make mistakes and not entirely due to their own fault (e.g. old title company didn’t record correctly, city put a lien on house that hadn’t recorded yet, squatter snuck in an wrote up a fake lease agreement, etc.)

Every hard money lender is different. We loan on the after repair value. Until we can be sure we have a deed of trust and can have an appraiser out to fully understand value, we wouldn’t be able to do a loan.

We do refis at 3.5, 12.5%, no prepay, one year term. We close 30-40 per month and growing.

[Anonymous]

I almost forgot, and most of you have probably known for a while: title insurance is extremely important right now. We have had had a few court house auctions reversed and several of our friends have been in court with former owners claiming wrongful foreclosure. Some after the investor already fully renovated the house. The former owner is obviously going after the orginal lender but the investor gets caught up in the litigation for months on end. I’ve heard of three in the last month alone.

Fred Eckert with Chicago Title in San Diego can and does policies for investors. Please spread the word to other court house step buyers you may know.

[Anonymous]

I almost forgot, and most of you have probably known for a while: title insurance is extremely important right now. We have had had a few court house auctions reversed and several of our friends have been in court with former owners claiming wrongful foreclosure. Some after the investor already fully renovated the house. The former owner is obviously going after the orginal lender but the investor gets caught up in the litigation for months on end. I’ve heard of three in the last month alone.

Fred Eckert with Chicago Title in San Diego can and does policies for investors. Please spread the word to other court house step buyers you may know.

[Anonymous]

I almost forgot, and most of you have probably known for a while: title insurance is extremely important right now. We have had had a few court house auctions reversed and several of our friends have been in court with former owners claiming wrongful foreclosure. Some after the investor already fully renovated the house. The former owner is obviously going after the orginal lender but the investor gets caught up in the litigation for months on end. I’ve heard of three in the last month alone.

Fred Eckert with Chicago Title in San Diego can and does policies for investors. Please spread the word to other court house step buyers you may know.

[Anonymous]

I almost forgot, and most of you have probably known for a while: title insurance is extremely important right now. We have had had a few court house auctions reversed and several of our friends have been in court with former owners claiming wrongful foreclosure. Some after the investor already fully renovated the house. The former owner is obviously going after the orginal lender but the investor gets caught up in the litigation for months on end. I’ve heard of three in the last month alone.

Fred Eckert with Chicago Title in San Diego can and does policies for investors. Please spread the word to other court house step buyers you may know.

[Anonymous]

I almost forgot, and most of you have probably known for a while: title insurance is extremely important right now. We have had had a few court house auctions reversed and several of our friends have been in court with former owners claiming wrongful foreclosure. Some after the investor already fully renovated the house. The former owner is obviously going after the orginal lender but the investor gets caught up in the litigation for months on end. I’ve heard of three in the last month alone.

Fred Eckert with Chicago Title in San Diego can and does policies for investors. Please spread the word to other court house step buyers you may know.

[Author]

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