Hard Money and the Economy

I read Dean's book once and I went through his Think a little different course but didn't take any action yet. What is the best way to find hard money lenders? That is really the only thing that holds me back right now that I didn't find a way to finance the foreclosures that I found and the distressed properties that i looked at. I am very handy and fix and flip is what i would be good at.

Thx,

Manfred

Have you tried putting an ad on craigslist? Also try a google search and see what you get.

Has anyone heard of doing presentations to attract private investors? Someone sent me some info how to set up it up. Please give me any feedback on this.

My favorite way of finding hard money lenders is going to the foreclosure auctions. People that invest at the auctions have to have cash in most states. Either they use their own cash or someone elses. If they use their own money will they lend to me? If they use someone elses money who do they work with? If I can get a business card from the investor at the auction I can look their name up at the courthouse and find out who is lending them money - this is if they are not willing to tell you who they use.

http://www.deangraziosi.com/node/4080

What about funding for long term. Does anyone know how to get alternative funding for hold-and-rent properties? With my credit I'll NEVER qualify at a bank.

Stephen

Try to get a credit partner, which could be a family member or someone (accountant, physician, ect...) who is interested in REI as well. You find the deals, they provide the credit and you split the profits! Many people network for partners on REI networking sites as well as sites like craigslist.

Hope that provides some insight.

Jennifer

I just wanted to comment on the post earlier for "Finding HML's", Another GREAT Place to find HML's is REIC(Real Estate Investment Clubs)ex. "DIG" Meetings, You can actually talk with them in person, because they have stands that they set up at the meetings. I always found it better to talk with companys or speakers in person, then say, on the internet. If you haven't been to a REI Meeting yet, then, GO! NOW! They are well worth your time....Believe Me, SULLY

The REI club is the way to go. There are so many contacts to make, it is so worth the time. Time very well spent.....Jan

I believe this can be one of the greatest ways to get started in real estate investing in addition to finding hard money lenders.

The people that go to these meeting understand how you CAN do real estate and do not tell you how you cannot do real estate. You will feel energized when you get done with these type of meetings.

Thanks for the back up Dianne on REI clubs. Here is one for you. I walked into my REI club meeting 2 weeks ago and one member who is a real estate magazine marketing director threw 20 pre foreclosures on the table (Lis Pendens) and said here guys go at it. Talk about a feeding frenzy!! I got 2 of them. I am working with a DG partner right now on a pretty nice piece of equity. But it is all because of my REI club and DG. pre foreclosure is new to me but we will learn....Jan

WOW. I have not had that experience, that is great.

I have found my favorite realtor and the investment clubs, a great hard money lender I have used and people are getting rid of property all the time.

I like Jjensen get jazzed being around other people like me. They are the people I really enjoy (other than my wife - she would get me if I did not put this - and my kids).

If a property is a preforeclosure through a listing agent, and I want to make an offer then assign it, do I still need a hard money lender or do I need a proof of funds letter, or both? Also can I even do an assignment, or do I need to do a double closing. I am very confused, I thought all of this funding approval was only for bank-owned properties, like REO's?

I read Sissy's post on Coastal Funding. It sounds like they charge you per transaction, but do they also charge you extra for each POF letter? I was on a RE webinar the other night where a guy, Cameron Dunlap has a Transactional Fundng program called One Day Dough, where you pay a certain amount that you get back when you fund your first deal with him, and he gives you unlimited POF letters and charges you 3 points. As a bonus you receive the Iflip database to track your RE business (bird dogs, buyers list, properties, etc.) It sounds very reasonable for what you get. Is anyone familiar with him? I don't know what I would do without this forum helping me.

It is a great idea to get a proof of funds from a hard money lender. This will give your offer a lot of strenght. Proof of funds show that you can purchase cash - whether purchase or not us up to you. This proof of funds can help you win purchases.

If a hard money lender charges for a proof of funds I do suggest finding another lender. There are plenty of them out that will give you a proof of funds for free. Paying upfront to get money back is a bad idea. What if you don't like the financing? A lot of times I have found good financing then found better financing before the deal goes through. Don't pay to get information.

Where are these meetings usually held at and when i go to check the investors name at the court house what dept. and is there a fee for that.

The aution meeting are usually held at the county courthouse. The information to when and where is often posted at the recorders office and/or in a public newspaper depending on your state statutes.

Checking the courthouse would be at the recorders / clerks / deeds office - whatever it is called in your area.

Thank u so much

Hard money can be a good gap stop measure if other financing is not currently available. Think of hm lenders in a relatively short time frame, under 1 year. The points are the biggest expense and they can be 5-6 points or more. these are front costs and so can be a factor in calculating your expense of getting into a property.

I agree with joertle. You should consider the points when getting into a loan IF you are using a lender that will be charging points upfront. Lenders can attach the points to the end of the loan. In this case the lender would give you a loan for say $100,000 but the loan documents would say that you owe them $105,000.

Also, 5-6 points are relatively high. True, you will find many lenders that will do 5-6 points; you can also find many that do 2-3 points.

While giving offers on properties I found that my static proof of funds that had just one amount of funding did not work as well as having specific proof of funds for each property with a price listed at exactly what I am offering.

The problem was calling a hard money lender each time and trying to get them to give me a specific proof of funds.

An option I have recently run into:

I went to www.coastal-funding.com and got a proof of funds emailed to myself. You can either just get a new proof each time emailed from the website or what I did was add this to a word document then put in areas for the amount and the address.

Now I can have a specific proof of funds easily and effortlessly.

Thanks guys so much for all of the valuable knowledge.

I am looking at using hard money lenders to aid me with REOs. It is good to know that proof of funds is provided FREE from many lenders.

Randy