If you're interested in getting a hard money loan or have questions about the process, feel free to book a call with me here: www.calendly.com/seanpanrealty/call
Very informative video. Theres a craze of videos going on about getting hard money loans with $0. Clearly thats a lie as a beginner, thank you for sharing this information!
It's possible to do deals with $0 out of your own pocket. However, it's unlikely that you'll get it from a large hard money lending company. There are some institutions or small private money firms that are willing to fund the purchase and rehab, but will charge you an arm and a leg for the loan. Some investors negotiate seller financing for their purchases or partner with another investor who can fund their deals.
I would say it's pretty rare for a HML to not perform a credit check on you. If they don't, expect to pay higher rates. Thanks for letting us know of these options though!
hi Sean, did u ever did a hard money loan on commercial property with 40 unit cashflow 180k annual, asset based loan, property for 2 million, they told me all I need was origination fee, since the property generate cash flow , but at 4% for 2 yrs of 12k month for 2 yrs, and balloon payment after it done, is that sound right????
Suggestion: white board this presentation and break it up into part. Great presentation but people get lost without an anchor (white board) to drill down your valuable message.
It depends on who the hard money lender is and what kind of relationship you have with them. Some lenders let you buy on auction if they're allowed to walk through the building and do their appraisal. Others will just send a representative with you to the courthouse steps and approve your loan on the spot!
Real Estate Investing with Sean I mean not to mention most auctions themselves don’t accept hard money loans, they want cash asap, not a loan. Hardly matters what the lender is.
Some questions. Do they do a hard inquiry to check your credit situation? And do you usually fix the property up and then refinance to 30yr? Do you refinance with the same hard money lender or a different mortgage officer?
Great questions Drew! 1) It depends on what lender you work with. Most will check credit, but the ones that don't usually charge a lot more. 2) We usually sell the property after fixing it up. But you can definitely refinance to 30 yr if you want 3) Hard money lenders have a DSCR loan program that is a 30 year loan for investors. The rates are a bit higher than conventional loans, so you'll have to weigh your options to see what works best for you.
@@seanlovesrealestate i really appreciate your responses! so if they give you a $200k loan with 10% interest for 12 month term, youd be paying roughly $18,333 per month? am i doing it right? and if you kept the loan going for the full 12 months youd own the entire house equity at that point?
@@seanlovesrealestate oh i think i figured it out. so each of the 12 months you only pay the interest portion. so it would cost roughly $1,666 per month? then you pay the entire principle when you sell the house, refin, or at the end of 12 months?
Thanks for watching! I'd recommend going conventional for your first few deals since they have the best terms. You can start using hard money for the more difficult deals.
Sean Lei - Money & Minimalism the first deal went really well. I would have spent more time learning the process instead of letting the contractors handle everything for you. Learning is the most important thing you need to do in the industry. I also would have networked more to get more options for my first hard money lender. My current one is great✌️
@@seanlovesrealestate If I decide to get into real estate I'll for sure try to understand the process. And like you said in person, look into real estate meetups in my area!
Private money loans will probably be your next best option. Find someone in your community that believes in you and your deal and have them fund the project for a portion of the profits!
I'm 16 and I'm looking at investing in real estate. I'm getting a hard money loan through my parents llc. My parents agree so long as it doesn't hit their credit score... The loaners said it won't hit their credit does this sound normal?
Hard money lenders will usually need to do a hard credit pull to check the credit score. However, the loan amount doesn't always show up on their credit.
It's rare to complete and sell a project within 2 months! But on occasion, some wholesalers buy and sell homes without doing any work, and that's why it's great to have a loan with no prepayment penalties.
I recently got a property and nearly finished it in 2 weeks. It was a small 2br, 1bath home though. Would had been done had I lived in the area. Either way, I think it’s possible if you have the right mindset and team behind you.
Wholesaling is a great strategy for newer investors. But to truly maximize the profits from a deal, you generally need to do the work to bring it to its full value.
Pretty close! If your loan is for $100K at 10%, then your yearly interest is $10K and your monthly payment is $833.33. The interest is based on the loan amount and not the purchase price.
@@seanlovesrealestate thank you for the Info that makes sense. I'm currently going through a 15 yr conventional investment loan for a rental property. However, I am still wanting do a fix and flip or possible another rental at the same time. Any suggestions on what route to take? I won't close on the Investment loan for another 4 to 5 weeks. Thank you.
@@seanlovesrealestate I am doing that now! Thank you. I found a duplex rent avg is $850 each. No work needed 155k fayetville nc. If I take the hard money loan it'll be temp to help. I assume after I would have to go into a refinance loan? Sorry to bother you with this. I understand fix and flips but buy and hold are confusing to me. I just don't want to keep using so much of my own money. Thank you
Yes, there are still some limitations to hard money loans, especially if the lender is a larger institution. If your loan amount is low enough, you might be able to get a private lender who is willing to fund the entire project.
Sure, to make numbers simple, let's assume a 10% interest rate. The interest on a hard money loan is often interest only, so every year, you'll be paying $9000. Divide $9000 by 12 months and you'll get your monthly payment of $750. This doesn't include any service fees or the monthly payments for your insurance or taxes though. Hope this helps!
@@seanlovesrealestate it does... Now will a hard money lender loan on repairs and purchase price if I buy the property for low enough? Say I buy a home with an ARV 150k Purchase price 25k Repairs 20k Obviously this would be very hard to get a deal this good but will a lender loan based off the percentage of ARV and lend on the repairs in addition to the purchase?
@@michaellong6532 We lend in over 30 states. Feel free to schedule a call with me if you need guidance or have any questions: Calendly.com/seanpanrealty/call Looking forward to chatting with you!
Great video ! informative content and very real. I got Hard Money Lending Tampa services from First Nation Finance LLC. They were reliable and very genuine.
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You are THEE first person that I have found who has explained this SO MUCH MORE CLEARLY than others! Thank you!
Thank you. Appreciate it! ☺️
If you're interested in getting a hard money loan or have questions about the process, feel free to book a call with me here: www.calendly.com/seanpanrealty/call
Do you hve a cellphone i have several Question About Hard Money Lenders
@@calorcito4209 yes, you can schedule a call here www.calendly.com/seanpanrealty/call
FANTASTIC VIDEO. This is exactly what I was looking for, thank you. Very excited to start putting some deals together and seek hard money loans!
Thank you for the helpful info. I always wondered what Hard Money lenders ask for.
Anytime! Feel free to contact me if you have any more questions about the hard money lending process.
Such good info here. Thanks, Sean!
Glad it was helpful!
Very informative video. Theres a craze of videos going on about getting hard money loans with $0. Clearly thats a lie as a beginner, thank you for sharing this information!
It's possible to do deals with $0 out of your own pocket. However, it's unlikely that you'll get it from a large hard money lending company. There are some institutions or small private money firms that are willing to fund the purchase and rehab, but will charge you an arm and a leg for the loan. Some investors negotiate seller financing for their purchases or partner with another investor who can fund their deals.
@@seanlovesrealestate thanks so much for that info, awesome content! 👍🏽
@@marirosado334 thanks!
Some HML do not ask for personal credit. Also some Hml will not lend if you don't have a legal entity
I would say it's pretty rare for a HML to not perform a credit check on you. If they don't, expect to pay higher rates. Thanks for letting us know of these options though!
Man thank you so much for sharing all this info! This was very clear and made the concept easy to understand.
I'm glad you enjoyed it! Let me know if something was unclear and I can make a more detailed video about that topic.
Thanks for the vids! Keep it up
My pleasure!
Very well put together video @Sean on the material. Very helpful.
Bro your room looks exactly like mine !! 🙏🏽 thank you for video by the way
Haha, I remodeled my room recently so it doesn't look like this anymore.
A good lender will make the process super easy and will hold your hand... a bad one.. could kill the deal all together
Yup! I've had both of those experiences. One of my lenders almost ruined an amazing deal. Luckily we were able to work things out, but it was scary!
Thanks for the explanation!
Glad you enjoyed it!
Great info, thank you!
Jay Allen thanks for watching!
Well explained! Just subscribed.
I'm glad you enjoyed it! Let me know if you have any other questions about hard money loans
@@seanlovesrealestate Certainly!
Do I need to work with a contractor when I using hard money or I can do the renovation on my own?
I’m thinking about getting a hard money loan then refinance after construction. I want to hold & rent out the 3 family home
Awesome! Feel free to schedule a call with me to see if your project is something we can lend on www.meetingbird.com/l/seanpan/call
hi Sean, did u ever did a hard money loan on commercial property with 40 unit cashflow 180k annual, asset based loan, property for 2 million, they told me all I need was origination fee, since the property generate cash flow , but at 4% for 2 yrs of 12k month for 2 yrs, and balloon payment after it done, is that sound right????
how to get proof of funds from hard money lender to buy Hud home
Hey Gina, getting a loan from a hard money lender is pretty simple, you just need to call them and let them know what you're about.
Suggestion: white board this presentation and break it up into part.
Great presentation but people get lost without an anchor (white board) to drill down your valuable message.
Thank you for your suggestion. I’ll look into it. ☺️
Can I buy a house at auction with hard money and refinance with a traditional lender?
If the auction terms allow
It depends on who the hard money lender is and what kind of relationship you have with them. Some lenders let you buy on auction if they're allowed to walk through the building and do their appraisal. Others will just send a representative with you to the courthouse steps and approve your loan on the spot!
Real Estate Investing with Sean I mean not to mention most auctions themselves don’t accept hard money loans, they want cash asap, not a loan. Hardly matters what the lender is.
Some questions. Do they do a hard inquiry to check your credit situation? And do you usually fix the property up and then refinance to 30yr? Do you refinance with the same hard money lender or a different mortgage officer?
Great questions Drew!
1) It depends on what lender you work with. Most will check credit, but the ones that don't usually charge a lot more.
2) We usually sell the property after fixing it up. But you can definitely refinance to 30 yr if you want
3) Hard money lenders have a DSCR loan program that is a 30 year loan for investors. The rates are a bit higher than conventional loans, so you'll have to weigh your options to see what works best for you.
@@seanlovesrealestate so when you get a hard money loan, what term do you try for? Like how many years?
@@drewdjv1 12 months is the typical term length
@@seanlovesrealestate i really appreciate your responses! so if they give you a $200k loan with 10% interest for 12 month term, youd be paying roughly $18,333 per month? am i doing it right? and if you kept the loan going for the full 12 months youd own the entire house equity at that point?
@@seanlovesrealestate oh i think i figured it out. so each of the 12 months you only pay the interest portion. so it would cost roughly $1,666 per month? then you pay the entire principle when you sell the house, refin, or at the end of 12 months?
Can you do an example on the whiteboard ?
That's a great idea. I'll do it on another video!
Great videos! So helpful! One question: to invest in your first rental property, do you advise to go with a conventional or hard money loan?
Thanks for watching! I'd recommend going conventional for your first few deals since they have the best terms. You can start using hard money for the more difficult deals.
Yo solid tips Sean!
Sean Lei - Money & Minimalism thanks bro! Lmk if you want to learn more about real estate investing!
@@seanlovesrealestate Definitely on your first real estate investment, what you would do differently, and any thoughts on turn-key properties!
Sean Lei - Money & Minimalism the first deal went really well. I would have spent more time learning the process instead of letting the contractors handle everything for you. Learning is the most important thing you need to do in the industry. I also would have networked more to get more options for my first hard money lender. My current one is great✌️
@@seanlovesrealestate If I decide to get into real estate I'll for sure try to understand the process. And like you said in person, look into real estate meetups in my area!
When I get hard money? Do I pay them monthly (mortage)? For the 4-6 months I get the loan for, or do I pay in full when I sell the property?
Usually pay monthly
What if you don’t have the capital And you don’t want use construction loans…? Is best to a personal loan?
Private money loans will probably be your next best option. Find someone in your community that believes in you and your deal and have them fund the project for a portion of the profits!
@@seanlovesrealestate Perfect! Thank You Sean
Bro thank you so much 🙏🏽🙏🏽🙏🏽
No problem!
I'm 16 and I'm looking at investing in real estate. I'm getting a hard money loan through my parents llc. My parents agree so long as it doesn't hit their credit score... The loaners said it won't hit their credit does this sound normal?
Hard money lenders will usually need to do a hard credit pull to check the credit score. However, the loan amount doesn't always show up on their credit.
@@seanlovesrealestate okay thank you!
Thanks for the info. But what project could you finish in a week? I imagine those are rare.
It's rare to complete and sell a project within 2 months! But on occasion, some wholesalers buy and sell homes without doing any work, and that's why it's great to have a loan with no prepayment penalties.
I recently got a property and nearly finished it in 2 weeks. It was a small 2br, 1bath home though. Would had been done had I lived in the area. Either way, I think it’s possible if you have the right mindset and team behind you.
@@BMWGarage77 that's amazing!
As a first-time real estate investor do you recommend applying for a loan as an individual or through an LLC?
LLC is best for liability reasons, but don't let that stop you from getting started.
Haha I thought the title said for introverts
Sharon Tseung lol I squeezed in an "absolute best..." in my description
Will hard money loans provide you construction loans?
Yes! Right now we're seeing 80% for construction loans.
Thanks.
Mine as well whole sale
Wholesaling is a great strategy for newer investors. But to truly maximize the profits from a deal, you generally need to do the work to bring it to its full value.
How do I get a meeting with you?
You can book a call with me here: www.calendly.com/seanpanrealty/call
I got an investor to contact me and left me a message saying that wanted more info about my project, is that good?
Depends, what is your project? Sometimes investors just leave voicemail bombs to see who calls back.
Can u please white board this presentation?
Ex 100k loan ? The origination points 2...would that be 1k a month ? If it's 10% that would be of the 100k loan ?
Pretty close! If your loan is for $100K at 10%, then your yearly interest is $10K and your monthly payment is $833.33. The interest is based on the loan amount and not the purchase price.
@@seanlovesrealestate thank you for the Info that makes sense. I'm currently going through a 15 yr conventional investment loan for a rental property. However, I am still wanting do a fix and flip or possible another rental at the same time. Any suggestions on what route to take? I won't close on the Investment loan for another 4 to 5 weeks. Thank you.
@@askme0084 Get a hard money loan! Just make sure they don't pull your credit while you're getting a conventional loan.
@@seanlovesrealestate I am doing that now! Thank you. I found a duplex rent avg is $850 each. No work needed 155k fayetville nc. If I take the hard money loan it'll be temp to help. I assume after I would have to go into a refinance loan? Sorry to bother you with this. I understand fix and flips but buy and hold are confusing to me. I just don't want to keep using so much of my own money. Thank you
Hey man how you doing I’m a private money lender would love to get in contact.
Do they care if you have a c/o on your credit report?
depends what hard money lender you use!
So , hard money lenders are not as flexible as I thought.
Yes, there are still some limitations to hard money loans, especially if the lender is a larger institution. If your loan amount is low enough, you might be able to get a private lender who is willing to fund the entire project.
@@seanlovesrealestate that ARV has to be on point
Can I get an example of what the monthly payments would be for a 100k house loaned at 90k with 10k down
Sure, to make numbers simple, let's assume a 10% interest rate. The interest on a hard money loan is often interest only, so every year, you'll be paying $9000. Divide $9000 by 12 months and you'll get your monthly payment of $750. This doesn't include any service fees or the monthly payments for your insurance or taxes though. Hope this helps!
@@seanlovesrealestate it does...
Now will a hard money lender loan on repairs and purchase price if I buy the property for low enough?
Say I buy a home with an ARV 150k
Purchase price 25k
Repairs 20k
Obviously this would be very hard to get a deal this good but will a lender loan based off the percentage of ARV and lend on the repairs in addition to the purchase?
Do you do hard money lending nationwide?
I’ve flipped several properties with an investor friend but looking to do it on my own but need some guidance. Hard money seems scary though
@@michaellong6532 We lend in over 30 states. Feel free to schedule a call with me if you need guidance or have any questions: Calendly.com/seanpanrealty/call Looking forward to chatting with you!
Nice!
ClintBeastwood thanks for watching!
Yee!!!! ☝🏾
Great vid fast talkin self lol
I'm trying to talk slower lol
Do you have any connections in Canada?
I'm looking to do this here on Vancouver Island. I'd love to work out a deal with you if you could lend a hand getting me financing.
Hey Clay, unfortunately, we can only lend in the US.
Do you get the loan first or find the property first?
Property first!
Great video ! informative content and very real. I got Hard Money Lending Tampa services from First Nation Finance LLC.
They were reliable and very genuine.
Thanks for sharing! Glad you like it!
VERY educational, thank you!
Glad you liked it!
Good info, very easy to understand.. thanks!!
Glad it was helpful!