HMLs asking for large down??

HMLs asking for large down??

We have been researching hard money lenders for a possible deal we stumbled upon while talking to a prospective RE agent.

She had a property that fell out of escrow (nervous buyer) that was supposed to close on 7/3/2010. It is an REO on the market for more than 4 months. All inspections were done, including termite. The subject property is in a nice neighborhood near a hospital, with many rentals in the area. The appraisal for this property came in at $134,900. The listing price is down to $99,900. It does need a new roof. Our agent shared that the bank took it back with a first mortgage of only $65,000 but didn't know if there was a second on it. It is a 3/2 with garage, remodeled in and out in 1985. Comps in the area are for $120K to $140K, all with less sq ft. Rental rates are $1,100 in this area. We are putting in our offer at $70,900 with a quick closing, and our goal is to pull out some cash at closing for the repairs, etc. Then do a refi to payoff the HML and put some additional cash in our pocket while renting the property out.

As we looked over HML, we saw many are asking for large down payments. If we had a large downpayment, we would go the traditional route of a bank and mortgage! Has anyone else encountered this with HML? Or is it just out here in California?

We also wanted to know if anyone has had a deal where they used a HML and took some cash at closing when there was a ton of equity in the property.

Thanks everyone for your input!!


In the top lefthand corner

In the top lefthand corner of this website, type in "hard money lenders". Great information on HML's

Experienced the same thing today!

I spoke to a HML today and they were asking for 20% down.


Kurt A. Conway, MSHA, President
The Conway Financial Group, LLC
Real Estate Investor

Hard Money

I've also had the run around with hard money lenders.I'm from california and from what i've seen most of these supposed HML'S are just like mortgage Brokers looking at credit and down payments over looking at the deal itself.However I found a guy on thats an angel investor and he's interested in funding multiple rehab flips and covering all costs involved.What I found also with a couple of people offering funding with no out of pocket on your behalf is they want to see a business plan or executive summary.This is where your dean skills will kick in.Explain your action plan and break down your deal scenarios.If you dont have money explain how you will calculate all costs into a 65% LTV even earnest money offer to split the profits 50/50.Include your marketing strategies to sell like Landlords,auctions,RE agents,Owner finance and sell the note,lease options.Also include how your helping the local business community like when you buy and renovate a house its a positive ripple effect your generating income and work for contractors,electricians,plumbers and small businesses that supply the materials.Put a lot of thought into it and when you find a HMl that says they finance with no out of pocket send them a copy of your Executive summary with an email.If their serious they will call you.




Lock up the deal & the money will show up. Offer 10% return secured by a mortgage & note. There's millions in Private money out there & a lot of them are looking for Investors that have deals locked up. HML is a last resort.


Jason S.
San Diego, CA.
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