Posted by linda on March 03, 2002 at 24:21:21:
Sorry, I’m in Ohio. My only suggestion is to check the classifieds, go to investor meetings, search the internet. Then make sure to check any lender out carefully and read every line of any contract you sign.
Good Luck:)
hard money risks - Posted by SteveW
Posted by SteveW on March 01, 2002 at 07:40:24:
I just talked to a investor oriented realtor and he discouraged me from using hard money lenders for rehabs. He referred me to a mortgage broker who I’m going to call today. He said that the balloon aspect of these loans can bite you. How many of you are using these loans successfully? Thanks!
Re: hard money risks - Posted by Lisa (NE)
Posted by Lisa (NE) on March 02, 2002 at 17:44:42:
If you treat a short term investment loan like a 30 yr loan, you can get bitten. Most people do not understand that it is a tool, a bridge. Once a LC or L/O with balloon or a hard money loan is in place, you still have to do your part. Fix it up or fix up your credit and get a long term loan. If you let it slide until the last month, then can’t find financing, that is your fault.
Re: hard money risks - Posted by linda
Posted by linda on March 01, 2002 at 12:37:35:
Hi Steve,
I am in no way an expert here, but I did my first deal with hard money. The points were cheaper than closing costs on a mortgage and the only asset attached to the loan was the investment. No appraiser has to enter the house and a 12 month loan gives you plenty of time to rehab. Many of them will work the points into the monthly payment. If your buyer can’t get their own financing you can refinance before the balloon comes due. - Also, good hard money lenders want to see you succeed and bring them more business, so they are very helpful if you have questions during the rehab.
Just my opinion, but I’d definitely do the hard money again. In fact, I just figure their cost into my original purchase price. Be careful, though. Just like anything else there are good lenders and bad lenders.
Linda
Re: hard money risks - Posted by Ed Garcia
Posted by Ed Garcia on March 01, 2002 at 11:03:32:
Steve,
Steve a few lesions I’d like to share with you is, (1) Don’t jump to conclusions, (2) Don’t over react. If you want to be successful in this business you have to have adaptability and knowledge of various types of financing.
Hard Money can definitely have it advantages. I’m not going to go into detail today, but you need to know and understand the various types of financing. In doing so, you will have you more opportunities to make a deal.
Ed Garcia
Re: hard money risks - Posted by RP
Posted by RP on March 02, 2002 at 19:07:27:
Any good contacts for hard money lender that lend in VA. Any suggestions would be appreciated