HML backing out.

you have a credit score of 640 or higher I know a site where you may be able to get funded

Can you ask him if he can connect you to another HML that he knows and put a good word in for you?
I know a guy in CA. I will find his number and get it to you. He also has a lot of connections if he cant help.
good luck and dont give up.
richie

My credit score is 600 and it has already a few bank loans on properties I have. Also I did asked him about another person or company to help me out and that was the guy that offered only the 50% of the purchase price.
I will not give up and I will get this property, Any help is really appretiated,
Thanks,
Daniel

if it is perhaps you could get financing from the seller.

I really get very iritated when I see a supposed hard money lender require a credit score of such and such.

I am fast becoming a expert on hard money lending. This is what I do. This is what has enabled me to leave trucking and make a living.

There are hard money lenders and then there are lenders who hide behind a secret vail, calling themselves a hml when in fact they are not.

Some lenders try to enter this area of lending. They think it is a great profit center and it is and can be, however, once they see that the deals being presented to them are not what they are accustomed to underwriting and funding or getting funded, they get out.

A real hml, will not ask for you credit information. They make their funding decisions based upon the deal. They look at it from a perspective of if I lend this amount or percentage of the value, are they protected.

If I am lending on a $100,000.00 property and I decide to lend 60% or $60,000.00 and I have to foreclose on the property or end up with it back in my lap, I can sell that property for $75,000.00 or the entire $100,000.00 if thats the value.

If a supposed HML asks for a 1003 application, then you can be assured that they are interested in the borrower and the property becomes secondary. This is why they require a high credit score.

A real HML will ask details about the deal and very little to none about the borrower. Some will pull credit as a means of making a determination as to the interest rate you will pay. Some will pull credit to ensure that you have not filed bankrupycy recently. Many HML's will not lend to someone who has not cleared bankruptcy.

You are in So Cal. Pick up the Los Angeles times. There are many HML's who advertise there.

Drop me a PM and lets talk.

is a bank owned property.
Thanks. I will PM you as soon as get out of the dentist..

So, you have this great REO and you need a hard money loan, you apply to several and get turned down. Why? Because you STINK at selling your deal!! Thats right, you need to learn how to SELL your deal to a lender.
Provide all the info about the deal AND yourself to ensure you will get the loan! If you really want to present yourself as a pro and get the loan do as follows;
Get a binder with tabs.

Section one should be about yourself, credit report, drivers license, a resume of your training and experience and FNMA 1003 loan app. Some people say this is not needed however remember you are selling your deal and want to get the loan,right? Provide all the info you can and don't waste any ones time. This is REAL world not theory about loaning only on the deal.

Section two, A copy of your purchase contract

Section three, Appraisal, a real one, not something of zillow.

Section four, Copy of the commitment to insure your property.

Section five, The title commitment

Section six, Inspection report from a professional inspector

Section seven, A repair est from a LICENSED contractor, with a copy of his license

Section eight, A spreadsheet of the numbers on the deal, purchase cost, closing costs rehab costs, commissions, holding costs etc and a time line from start to finish

Section nine, Photos inside and out of the property.

Present and SELL this to your HML and you will get a loan!! You are going to have to do this anyway, you might as well present yourself as a pro.

Believe me folks, HML do not just loan on a percent of ARV. They want to know that you know what you are doing and how you are going to do it and when. Unless they are in the foreclosure business (get it DGers?)
They also want to see up to 6 months of loan payments in your account before loaning. Most will want there points up front. Also NEVER pay ANY kind of fee up front, before closing. SCAM!!

Good luck! Hard money is great in certain applications!

Michael Mangham
MD Home Acquisitions LLC

One more thing on the FNMA 1003 App. The hard money guy will use this as info supplied only. If he is not licensed he can't use it BUT it will be part of your professional presentation.
Do your home work and take the time to contact several HMLs and ask them if you can start the qualification process. Tell them you don't have a property, you just want to be ready when you do. What are there rates, points? What % of ARV to they loan. Do they loan any towards rehab? What info will they need from you.

Happy Investing
Michael Mangham
MD Home Acquisitions LLC

Well definitely there is alot that I still need to learn and that is the reason for the post. Thank you all for taking the time to respond and guiding me on my problem. I guess it was pretty easy for me dealing with my previous HML since the begining I just presented the purchase contract, an the estimated repair cost and he will take it from there and will come up with the ammount of money I needed which was from 15% to 25% of the purchase contract. Now that he has some problems and can't help me I found out that I need to be more organized and better prepared when presenting my deal.
Well like I said before I will get a loan for this house and get this deal done.
Daniel

Michael,
What is section five: Title commitment?
Daniel

Also, when I said "because you stink" in my post about HML I did not mean that about anyone just an attention getter. When I read my post after I posted it I thought that did not sound right. OOPS! Nothing personal and I am sorry if that offended anyone.

Michael Mangham
MD Home Acquisitions LLC

what does points up front mean?

Most hard money lenders charge % points of the loan amount and interest. Anywhere from 2 to 6 points and anywhere from 10% to 15% interest
Example. You borrow from a hard money lender that charges 4 point and 12 % interest. You borrow $100,000.
The lender gets $4.000 dollars at closing and $1,000 per month usually for 6 to 12 months with the balance of the loan due at that time.

Call several hard money lenders and ask them their terms and how to qualify.

Hope this helps,
Michael Mangham
MD Home Acquisitions LLC

I thought you ment we had to pay for the points before the closing. We did points on a refi once.

What is the Section five, The title commitment?

It seems like I have less equity than what I thought but still the numbers are pretty good so one HML is reviewing my portafolio and will do a second loan on another property I have that has more equity and that way I will come up only with what I have.

I'm not as confused as I was about hard money lenders..Thanks for the info..

nice come back mike and awsome info. you through me off with your bluntness but great rebound.

Dan,

I have a HML that has partnered up with me on deals. Sweeten the pot for the pig. Most deals are for points and interest 2 - 6 points 12 to 16 % interest. Offer more points and interest that would equal a percentage of profits.
Many differnet ways of doing the deal.
1. Your standard issue deal. You have to keep looking for a New lender which you should be doing all the time.
2. Lenders that are partners.
3. Lenders that you give more points to and interest to.

Remember you can structure your deals and lending anyway you want. Meaning if your acustomed to paying 2 points and 12% interest were the lender is paid months yu can continue along that same path but offer more points and interest on money when house is sold. The end offer should equal what you would pay a partner. I would check with my accountant because if I'm not mistaken the additional point and interest are a tax write off. Make sure you put a cap on it. Not to exceed so you don't bleed to death

Remember they want to play in your sand box. If there not doing deals there not making money. If your a good salesmen you can make the lender think its was his idea.

good Luck

Adam

So far I have learned a few lessons:
1. Don't get to confortable (they keep moving the chesse).
2. Always have different options (in this case line up other HML or private money to be ready if you need them).
3. Be orginazed and ready to present and sell your deal (because of what happened I did an updated file with information on my portafolio including purchase date of each property I have, amount paid, type of property, present maker value, amount of Mortgage and liens, gross rental Income, mortgage payments and net rental income).
4. If you have a question or just need some motivation post it in DG.com (is amaizing the amount of information and motivation you will receive)

Daniel

Thank you so much for listing your portfolio questions, I plan on using all of them also.

GREAT INFORMATION! THANKS DG FAMILY..ESPECIALLY MICHAEL. THANKS

Cedrick,
I will call you to get details on what you can offer,
Thanks.
Daniel

I had sent you a pm requesting info on your lending criteria and never heard from you again. I am assuming you are not legit. please correct me if im wrong.
Richie.

I also sent a PM to jimmybtx but no answer either.