Hard Money Loans - 5 Things You Must Know

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  • Опубліковано 29 жов 2024

КОМЕНТАРІ • 57

  • @LarryFeingersh
    @LarryFeingersh 7 місяців тому +6

    We are a private hard money lender in Texas and we do charge a 2-3 point origination fee (depending on term) but we do NOT charge for appraisals, underwriters, document prep, or any of that! We don't even charge a pre-payment penalty if you pay off your note early. We try to only loan on projects that will be a win/win for us and the borrower. Very educational, thank you for sharing.

    • @DrumaticTV
      @DrumaticTV Місяць тому

      Can you contact me?…I have multi family deals in the pipeline in Michigan

  • @AllthingsOSK
    @AllthingsOSK 2 роки тому +10

    The difference between hard money and private lending is that hard money is backed by real estate collateral and are typically not credit based for decisions. Private money lending typically use credit as a determining factor and are not necessarily collateral based.

  • @1789crazy
    @1789crazy 2 роки тому +6

    You are right about the contractors part. Im a contractor and nothing is getting done without a signed contract and a downpayment. A lot of "investors" dont like to pay and they come with all kinds of excuses. A lien on the property fixes the problem 🤣

  • @devinlopez9556
    @devinlopez9556 3 роки тому +8

    Great subject, you are absolutely right about the Hard money lenders those things you talked about is never plainly explained by the HML, hopefully this information helps others make an informal decision if they chose to use a HML.

  • @sidequestplays4768
    @sidequestplays4768 3 роки тому +7

    Great video! I learned so much, you did a great job of making that information easy to understand.

  • @thewholesalecoach
    @thewholesalecoach 3 роки тому +5

    I can vouch the course on private money lending is SUPER legit 💯💯 tons of value inside! Appreciate the content as always brother 💪🏾

  • @Charliespathwellness
    @Charliespathwellness 2 роки тому +2

    Thank you soooo much! Because the internet make it seem like the hard money release the rehab fees for the rehab. I just learned today the rehab fee is held in escrow.

  • @arebollar4
    @arebollar4 2 місяці тому +1

    I like how you added your course Add there lol😂

  • @MikeOtranto
    @MikeOtranto 4 місяці тому

    Great video! The fees drive yield for the lender. This is one reason why I prefer to work with private money lenders. Though, if the deal is good enough I will borrow institutional hard money.

  • @uendygarcia4092
    @uendygarcia4092 7 місяців тому

    Thank you for sharing valuable information for those who are new in the real estate market

  • @LawrenceBland
    @LawrenceBland 2 роки тому +2

    Great info. We defintly have to talk. I'm going to check out your link. I'm very experienced in rea estate (30 yrs) took a short hiatus a while back for personal reasons and of course covifld. Now 100% back in the game.

  • @XinLao-z4l
    @XinLao-z4l 8 місяців тому

    Most Hard Money Lenders list their fee's on their website. Many also have a calculator on their site that shows your upfront cost and profit. Yes you do need some funds for the rehab to pay for the work first, then pay for an inspection, then wait for the draws to deposit into your account, while still paying interest payments every month.

  • @fourstars5270
    @fourstars5270 3 роки тому +6

    Just sold a property today, arv was $320,000. Sold for $395k. Their arvs are always low, I think they do that on purpose

  • @alexfreeman3281
    @alexfreeman3281 3 роки тому +2

    u dis motivated me

  • @markworthington5423
    @markworthington5423 Рік тому

    Most people that aren't investors don't understand complex financial deals. No mention of how quickly they can process a loan, which is extremely important. I've had a loan within 5 days!! Once a relationship is built, I get top tier terms that beat every bank. Also no mention that traditional banks and mortgage companies do not lend one penny for rehab costs. The interest only payments are just a part of the expense column for my accountant to deal with....the cost of doing business.

    • @AustinRutherford
      @AustinRutherford  Рік тому

      Hard money can be good at times. I prefer 100% private money everything

  • @Alessandro1983
    @Alessandro1983 11 місяців тому

    Thank you for the video. I was under the impression that HML could also be obtained by banks.

  • @elle5031
    @elle5031 Рік тому +1

    Thank you for your info. Wondering if you could give me advice. I am working with a Hard Money lender. I get the fact that the closing and interest costs are high. I am not a flipper. I need the loan to purchase a small townhouse which only cost $90,000. My father is loaning me $57,000. Hard lender loaning $33,000. My plan is to buy, move in, sell the condo I currently own which is worth between $150,000-$170,000. Then pay the first mortgage ($43,000) then this second mortgage. I HAVE QUESTIONS..............
    Please help!!!
    I am concerned of signing papers which could mean lender gets my property. And also why is lender asking me to put him on my home owners insurance???

  • @MrMojoman1976
    @MrMojoman1976 Рік тому

    What's the best way to get a loan to buy a house you want to live in for only two years , repair, then sale? I cannot get financing because I am not a business/real estate entity and while I have good credit, the DTI is too high for traditional routes.

  • @elizabethadelman6555
    @elizabethadelman6555 10 місяців тому

    Hey, thank you so much for your videos. They're super helpful. I'm curious how the private money lending works. Theoretically let's say you're using that private money on a multi family, do you do a hard money loan after the renovations are done? How do you fund that after the year or so that you agreed upon with the private lender. Also, what are your thoughts on HELOC from one's current residence?

    • @AustinRutherford
      @AustinRutherford  9 місяців тому +1

      I take it to long term bank debt once the project is done to pay off my private money lenders

  • @SIG366
    @SIG366 3 роки тому +2

    Great Content 👍

  • @talentekhuzwayo2705
    @talentekhuzwayo2705 2 роки тому +2

    I thought the point of hard money lenders is that they loan u quick money, for around 6-9 months & u only have to pay the principal & interest after that time period in full

  • @RoxxStr
    @RoxxStr 2 роки тому +1

    Great tips! My question is, does this include major banks as well? Or is it just stand alone/private companies?

    • @Alessandro1983
      @Alessandro1983 11 місяців тому

      HML's only apply to stand alone/private companies. Banks do not offer these types of loans

  • @CLeAnQUaRTeRz
    @CLeAnQUaRTeRz Рік тому

    wow thats crazy! :0 learned alot thank you bro

  • @toneiv6560
    @toneiv6560 3 роки тому +1

    How to convince private money investors to fund your deals ???

  • @johnkesinger2191
    @johnkesinger2191 3 роки тому +2

    I completely inform my borrowers of all the costs on the first call. Only fees are origination, service fee and Title/Insurance costs. Rehab is escrowed with draws. Have had many successful projects

    • @MMeansNSTI
      @MMeansNSTI Місяць тому

      Can all the fees be taken out of principal amount? Or is it an upfront cost?

    • @johnkesinger2191
      @johnkesinger2191 Місяць тому

      @@MMeansNSTI fees are paid at the closing for Rehabs. They can be taken out of the principal for a refinance as long as there is enough to cover it.

    • @MMeansNSTI
      @MMeansNSTI Місяць тому

      @@johnkesinger2191 can I put in an application? I have a property in norcross Georgia I would like to buy that is cash flowing. Already has a tenant

  • @brandonbarnes3748
    @brandonbarnes3748 3 роки тому +2

    What are the points you're speaking of?

    • @TheGOATof909
      @TheGOATof909 3 роки тому +5

      each point is like $1000 for every $100k .. So if the loan is $300k and they want 3 point then you pay $3k

  • @phonesangaphayarath7326
    @phonesangaphayarath7326 Рік тому

    have u ever did asset based loan on commercial property, 2 million property, cash flow 180k annual , they said since is asset based property generating cash flow, all I need is origination fee and 4% ON the 2 million with monthly payments of 7k month for 2 yrs, after 2 yrs I have to pay the 2million is that correct ???

  • @sandraverhoeven1317
    @sandraverhoeven1317 2 роки тому

    Awesome

  • @kyshac81
    @kyshac81 Рік тому

    The closing costs on hard money is damn near triple.

  • @joelover2631
    @joelover2631 2 роки тому +2

    Nice, that's all I wanted to know, I guess that's a out for me, Robert Kiyosaki said it best, seek real teachers

  • @FoougieTV
    @FoougieTV 3 роки тому

    Austin! You broke everything down perfectly. You're smooth as hell. I started getting hypnotize. I think I have a crush on you. 🤣😊 #newsubbie

  • @MMeansNSTI
    @MMeansNSTI Місяць тому

    Who can recommend me private money lenders in Georgia?

  • @ropatipisia4830
    @ropatipisia4830 9 місяців тому

    Based on this video, I will never do Hard Money...

  • @MrBluemanworld
    @MrBluemanworld 2 роки тому

    These are evil institutions

  • @raymiller6587
    @raymiller6587 3 роки тому +1

    They’re all crooks

  • @casper24ism
    @casper24ism 11 місяців тому

    Dude your acting like only hard money loans do this stuff,a big bank does the same thing!

    • @AustinRutherford
      @AustinRutherford  11 місяців тому

      Agreed for sure. Private money is the best!