Ann Bellamy, Lending to real estate investors since 2006 (Hard money lending for investors in NH and MA)

Spam prevention
Ambassador
5,896,874
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Several of my early investments were made possible by hard money lenders.  Important to have folks out there that can provide capital when needed.

Mar 07, 2022 03:33 AM
Ambassador
2,622,164
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Hi, Ann.

 

When, and why, would a Borrower seek out hard money?  What are some examples?

 

Hard money, private money, in-house, portfolio... are these names synonymous?

 

Is  this a "temporary" loan, until Borrower can get a conventional or traditional mortgage? 

 

What is the advantage, or disadvantage, of hard money?

 

The required credit-worthiness of an applicant, including FICO or other credit score. 

 

LTV?   

 

What is a common term (length) of a hard money loan?  What about a Balloon?

 

What will you, the hard money lender, loan money for?  Residential?  Commercial?   Is there anything  that is off the table?

 

Paperwork... how does it compare to a conventional loan?

 

Are you, the Lender, keeping this loan, or will you be selling the paper on the Secondary market?

 

The interest rate:  how many points over "prevailing rate"?  What about origination fees, other costs charged for getting this loan?

 

What about appraisal?   

 

Where does a borrower start looking for portfolio money?  Their local bank?   The internet?  The big banks?  Someone/somewhere else?

Mar 07, 2022 07:06 AM
Rainmaker
860,772
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Discuss ways to pay down those loans, or how to get out of them.

Mar 07, 2022 05:40 AM
Ambassador
1,961,978
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Is your hard money lending limited to NH and MA?  If not, do you have a network of peers who do hard money lending in other states?

What kinds of properties does hard money lending NOT work for. 

How is the approval process for a hard money loan different from getting a conventional loan?



Mar 07, 2022 07:43 AM
Rainer
259,057
Byron K . Jones
Coatesville, PA
List Today - Sold Tomorrow!

what can you use hard money lending for and what cant you use it for...start off with the basic's

Mar 07, 2022 05:29 AM
Rainmaker
4,708,946
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Like Peter Mohylsky. Broker -BRIX REALTY', thik you should start with the basice concept of hard money lending and its parameters. Good luck! 

Mar 07, 2022 04:42 AM
Rainmaker
1,026,675
Peter Mohylsky
PMI. Destin - Miramar Beach, FL

My thoughts are that most folks don’t understand hard money lending at a basic level

Mar 07, 2022 03:57 AM
Rainmaker
1,085,737
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Discuss what hard money ending is and why the costs appear to be so high

Mar 07, 2022 06:54 AM
Ambassador
3,187,662
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I would just go with the basics ... the A to Z of hard money lending. Be sure to cover the Co$t, benefits, disadvantages - everything we want to know but are afraid to ask. 

Also tagging Eileen Burns and Debe Maxwell, CRS here to see if you would like to talk about hard money loans on one of the Weekly Zoom meetings. 

Mar 07, 2022 07:57 AM
Rainmaker
2,709,717
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hard money is for people who have a clear, precise plan to get from point A to a point B and they need immediate, expensive funds to do so. The word "hard" needs to be explained. Also, the risk involved needs to be weighed as hard money lenders will foreclose in a heartbeat if it meets their business model. For the inexperienced or desperate? Stay-away here

Mar 07, 2022 06:50 AM
Ambassador
2,850,799
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Please follow up with a blog post on the results of your podcast. It could very very informative Ann. Thank you!

Mar 07, 2022 06:50 AM
Rainmaker
833,643
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

Who would be a candidate for hard money.

Mar 07, 2022 06:34 AM
Rainmaker
1,784,604
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Gee, I'm not sure what I don't know. Can't tell if this is a commercial. 

Where to go to a reputable person if the need arises would be #1.

Mar 07, 2022 06:24 AM
Ambassador
4,159,390
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I can't think of any questions, but I think it is admirable that you help people learn when it makes sense to use and when it does not.

Mar 07, 2022 04:55 AM
Ambassador
1,025,118
John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

How to wade through all the nonsense in the hard money space - from posterboard advertisements on the side of the road to random email solicitations from everyone in the space, I've found it difficult to find professional outlets or differentiate the good from the slimy, so I've avoided the space altogether.

Mar 07, 2022 09:31 AM
Rainmaker
4,652,541
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

The problem with asking what we have questions about, is that we don't necessarily know what we don't know... so it's hard to know what questions to ask.

Mar 07, 2022 12:07 PM
Rainmaker
964,296
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Fred Griffin Florida Real Estate didn't miss a spot!


Mar 07, 2022 11:35 AM
Rainmaker
164,802
Aura Alex
CloseMyDeal, LLC - Seattle, WA
Specializing in Multifamily Projects Nationwide

I have used hard money loans for short-term (guaranteed exit strategy in place) real estate investment only, and I have never heard of a hard money long-term mortgage loan. ????

Mar 07, 2022 10:49 AM
Ambassador
3,687,106
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Ann Bellamy Thanks for taking my call this morning. And I did send you an email. It looks like there are lots of questions from this group. 

Mar 07, 2022 08:22 AM
Rainmaker
5,476,646
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Although I have had listings where the buyers had hard money, that is about all I know.    It was nice not to have an appraisal.

Mar 07, 2022 06:06 AM
Rainmaker
1,405,784
Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

I think a handy topic these days would be what kind of bridge loans do you offer.

Mar 07, 2022 07:17 PM
Ambassador
3,448,361
Anna Banana Kruchten Phoenix Broker
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Fred Griffin Florida Real Estate took the words right out of my mouth! 

Mar 07, 2022 12:26 PM
Rainer
365,248
Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Explain: States you lend in, minimum loan amount, FICO requirement, property condition, ARV?, LTV, number of units, how many days to close, typical points, rates, type of appraisal you require, STR?, how long a term, what exit strategies you accept, how to contact you

Mar 07, 2022 10:25 AM
Rainmaker
1,086,200
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

I hear frequent adds on a local radio station from a hard money lender. Good adds for those who understand that business and need that kind of financing. They specifically say they will not lend on owner occupied homes.

Mar 08, 2022 10:21 AM
Rainmaker
716,350
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

You might want to share our experience with using a Hard Money Loan.  We paid 3 points plus closing costs in 2014.  We inherited a home and couldn't qualify for a conventional loan.  There was a Reverse Mortgage on the home.  The Loan was Reverse Mortgage was for $200,000. The value of the home was $480,000.  We would have sold and made $265,000.   Our equity today is about $800,000.

Mar 07, 2022 05:44 PM
Rainer
52,768
Ann Bellamy
Hard money lending for investors in NH and MA - Tyngsboro, MA
Lending to real estate investors since 2006

Here is the link to the podcast, for those interested.  I will also be answering questions on today's 2PM podcast here on AR.

https://www.facebook.com/watch/?v=1597673183940431

Mar 22, 2022 03:51 AM