OfflineHello Gang,
I have a question. I found a property that is a HUD property. I am finding it none do able to lock down the property with out having 1000 escrow down.
I have already found renters that are willing to fix up the place and move in for some cuts on rent. So everything is good. My question is i have read in the books about hard money loans and ARV loans and wanted to get some advice on them as how others have done them.
Also how they address the question such as how did you ask for the money or what type of report did you give the person loaning you the money?
Thanks for the advice !
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There are many hard money lenders and each one will have standards of how they lend money. It is costly to get hard money, and had a very sort term. The money will be expansive and you will have to have an exit strategy in place to get the hard money loan paid off, either selling the property or refinancing it into a typical loan. Most hard money lenders will look at a property and let you know how much they will loan on the property, but they will not loan money for escrow. You will have to research hard money lenders in your area to see what types of programs they have available to you. Make sure you have an exit strategy in place as well.
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To add, HUD is very firm on their escrow deposits. Cashier's check, usually $1,000 down, not negotiable. In fact, you'll have to use their contracts and it says void if anything is changed. But you can some great deals through HUD!
- Tom