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Thursday, April 15, 2010
Thursday, April 1, 2010
Let’s Talk about Proof BABY!!!
So, I’m back. In our last talk, we discussed the process and I briefly touched on our Proof of Funds Letter. Well, I was thinking more on this and I thought, you know, this is such a great thing, we REALLY should talk about it more.
With that in mind, I introduce to you – the proof you are going to give to your sellers, banks, or anyone who wants to know if you have MONEY!!! So, you are asking yourself, how can DoHardMoney, just randomly give me a letter without ever me speaking to them on the phone. Well, when you go on our website requesting a Proof of Funds letter (sometimes you might also have it called a pre-approval letter) it will ask you for your name, your email address, the address of the property, and then an “approximate” loan amount, we don’t ask for a specific amount as most of the time you will want to borrow or get approved for more money anyway and the seller shouldn’t even be concerned about if you are approved for more than what you are offering to them. It will then generate a letter. This information that you have supplied to us, gets stored in a database. If a seller, bank, etc. calls us to confirm that we do indeed have the funds for you as the borrower, we can easily pull up your name and confirm the information. It is as simple as that. You can utilize this tool for as many properties that you have. I think this is unique to DoHardMoney.com, so embrace it.
You see, we don’t make money, unless we can lend money. So, there is no concern that you won’t be approved for a loan; as long as you follow our criteria and if needed provide additional funds, then we can provide the loan. It is up to you whether you want to accept the loan or not.
Our Goal: To help Real Estate Investors make a profit of $26,000,000 by Dec 31, 2012
Keep an eye on it, it is moving, and I want you to be a part of it.
With that in mind, I introduce to you – the proof you are going to give to your sellers, banks, or anyone who wants to know if you have MONEY!!! So, you are asking yourself, how can DoHardMoney, just randomly give me a letter without ever me speaking to them on the phone. Well, when you go on our website requesting a Proof of Funds letter (sometimes you might also have it called a pre-approval letter) it will ask you for your name, your email address, the address of the property, and then an “approximate” loan amount, we don’t ask for a specific amount as most of the time you will want to borrow or get approved for more money anyway and the seller shouldn’t even be concerned about if you are approved for more than what you are offering to them. It will then generate a letter. This information that you have supplied to us, gets stored in a database. If a seller, bank, etc. calls us to confirm that we do indeed have the funds for you as the borrower, we can easily pull up your name and confirm the information. It is as simple as that. You can utilize this tool for as many properties that you have. I think this is unique to DoHardMoney.com, so embrace it.
You see, we don’t make money, unless we can lend money. So, there is no concern that you won’t be approved for a loan; as long as you follow our criteria and if needed provide additional funds, then we can provide the loan. It is up to you whether you want to accept the loan or not.
Our Goal: To help Real Estate Investors make a profit of $26,000,000 by Dec 31, 2012
Keep an eye on it, it is moving, and I want you to be a part of it.
What is the process?
So, you know now all about pre-qualifications – THERE IS NONE. Now, let me tell you about our process. It is quite simple actually. It starts out with you going out and getting the “property under contract”. WHAT DOES THAT MEAN?? Well, really all that means is where the buyer (you) and the seller have executed a purchase contract. Sometimes in order to do this you may need a proof of funds, well the beauty of our program is we can provide that for you. All you need to do is go under our Residential Loan Fees and we have a link that will take you to a Proof of Funds letter. This is a great letter. It will provide you the proof you need to show either a seller, a bank, or whomever you are trying to purchase the property from that you do indeed have the funds available to purchase the property. But I digress.
Now the process. You now have the property under contract, you are then going to go to our website (By the way, we are updating it and you are going to LOVE the changes that you will be seeing in about a month) and click on the Apply For Loan tab. Here is where the MAGIC begins. You will begin filling out the application for a loan. Now unlike a traditional bank, where you are signing away your first born (or so it feels like it) our application is only a few pages long and mostly we are just trying to gather information about the property. As you recall in our last message, remember the loan is about the property, not about you. So, from the time you give us the application it takes 2-4 days to get the evaluations completed. The $550 evaluation fee has to be paid at the time of application. That is why you don’t submit a deal until you have a fully executed contract. We are using a nationwide independent 3rd party company to do the evaluations. They will send out two evaluators at separate times to review the property, take interior/exterior photos, make and comment about rehab work and the estimates for that work. They will then complete our internal form we require. The evaluators have to be paid for their work and that is what the $550 is for. Now before you ask, no they aren’t appraisers, we don’t use appraisers, nor do we require an appraisal. This isn’t a traditional loan. Nor can we use previous evaluations that you may have had done. During the time these evaluations are being done we need you to get us all the required information to complete the loan. Once we have the evaluations back we can close 48 hours after that. Typically the hold up is with the title company (you choose) waiting for the title report to be completed, closing protection letter or wiring instructions and the hazard insurance agent. In some cases we are also held up waiting for the borrower to get the require documents in to complete the loan. We only have control over 1. The evaluations. They take between 2-4 Days 2. Approval and Docs. We can get that done in 48 hours. Everything else is up to you as the borrower, the title company and hazard insurance agent. We can move very, very fast.
That is the basic process. Happy Investing!!
Now the process. You now have the property under contract, you are then going to go to our website (By the way, we are updating it and you are going to LOVE the changes that you will be seeing in about a month) and click on the Apply For Loan tab. Here is where the MAGIC begins. You will begin filling out the application for a loan. Now unlike a traditional bank, where you are signing away your first born (or so it feels like it) our application is only a few pages long and mostly we are just trying to gather information about the property. As you recall in our last message, remember the loan is about the property, not about you. So, from the time you give us the application it takes 2-4 days to get the evaluations completed. The $550 evaluation fee has to be paid at the time of application. That is why you don’t submit a deal until you have a fully executed contract. We are using a nationwide independent 3rd party company to do the evaluations. They will send out two evaluators at separate times to review the property, take interior/exterior photos, make and comment about rehab work and the estimates for that work. They will then complete our internal form we require. The evaluators have to be paid for their work and that is what the $550 is for. Now before you ask, no they aren’t appraisers, we don’t use appraisers, nor do we require an appraisal. This isn’t a traditional loan. Nor can we use previous evaluations that you may have had done. During the time these evaluations are being done we need you to get us all the required information to complete the loan. Once we have the evaluations back we can close 48 hours after that. Typically the hold up is with the title company (you choose) waiting for the title report to be completed, closing protection letter or wiring instructions and the hazard insurance agent. In some cases we are also held up waiting for the borrower to get the require documents in to complete the loan. We only have control over 1. The evaluations. They take between 2-4 Days 2. Approval and Docs. We can get that done in 48 hours. Everything else is up to you as the borrower, the title company and hazard insurance agent. We can move very, very fast.
That is the basic process. Happy Investing!!
What the Customer Wants to Know
We are constantly updating our website. We go back and forth with our developers, arguing about what would be best for you to not only keep you interested but mostly to EDUCATE you. What better way to have you use hard money then to have you understand what it is we do exactly. So, here we go. Here are some of the common questions that I receive daily. This information is on our website, (Now you are probably thinking why would we repeat this information if it is already on their website??) however, I think perhaps, it just needs a better explanation or maybe just a different viewpoint.
One of the questions that I receive A LOT is what are our pre-qualifications for our loans. Well, you see, here is the great thing about DoHardMoney (because not all Hard Money Lenders do this). We are not a BANK. We aren’t CONVENTIONAL (**gasp**). We are not going to take the average 30-60 days to get you your loan. We get all of our money from Private Lenders. In fact, if you have your property under contract, and you can get all of you paperwork in check for us, we can get your loan turned around in 48 hours. So what do you have to do to get the loan?? Here it is:
1. We lend based primarily on the property, not YOU.
2. You have to have the property under contract. We can’t speak to you until you have that first.
3. Make sure it is in the States that we Serve. We list them all out on our website with the Counties underneath. We make no exceptions on this.
4. Make sure it is within our pricing, between $50,000 and $250,000. No exceptions.
5. No outstanding judgments, or bankruptcies within a year.
That’s about it. We have specific types of properties we won’t lend on, but basically what we DO lend on are Single Family Non-occupied Homes, Condos, Twin Homes, Town Homes and Lofts.
Again, we loan based on the property not you. So, we don’t need your taxes, we don’t need your proof of income, etc. Take a look at our Frequently Asked Questions, I think you will be pleasantly surprised.
One of the questions that I receive A LOT is what are our pre-qualifications for our loans. Well, you see, here is the great thing about DoHardMoney (because not all Hard Money Lenders do this). We are not a BANK. We aren’t CONVENTIONAL (**gasp**). We are not going to take the average 30-60 days to get you your loan. We get all of our money from Private Lenders. In fact, if you have your property under contract, and you can get all of you paperwork in check for us, we can get your loan turned around in 48 hours. So what do you have to do to get the loan?? Here it is:
1. We lend based primarily on the property, not YOU.
2. You have to have the property under contract. We can’t speak to you until you have that first.
3. Make sure it is in the States that we Serve. We list them all out on our website with the Counties underneath. We make no exceptions on this.
4. Make sure it is within our pricing, between $50,000 and $250,000. No exceptions.
5. No outstanding judgments, or bankruptcies within a year.
That’s about it. We have specific types of properties we won’t lend on, but basically what we DO lend on are Single Family Non-occupied Homes, Condos, Twin Homes, Town Homes and Lofts.
Again, we loan based on the property not you. So, we don’t need your taxes, we don’t need your proof of income, etc. Take a look at our Frequently Asked Questions, I think you will be pleasantly surprised.
Celebrate!
Even the elusive Dale Begg-Smith from Australia celebrated when he crossed the finish line. This guy has no emotion and does not like the press at all. In fact on the medal podium it looks like he can’t wait to get out of the spot light. But the second he came across the finish line he looked like a kid in a candy shop. He Celebrated in his own way. When you finish your rehab and retail, celebrate. Now don’t get ahead of yourself, let’s define finish. Finish is when you have the check in your hand and your hard money lender has been paid back. That is the time to celebrate. Don’t make the mistake of spending the money just because you have the property under contract. Problems happen, in real estate nothing is a sure thing. Lenders go out of business, people don’t fund, buyers lose jobs, inspectors don’t like the house, the list goes on and on.
So once your Hard Money lender is paid off and your check is in hand it is time to celebrate. I like to set a goal when I originally purchase the property. Nothing crazy just something to represent the hard work, for example taking my wife to a really fancy restaurant, getting a new chair for the house or something small, but something you would not normally do. Don’t overdue it, be conservative. But do something fun and Celebrate. By the way, if by some slim chance Dale Begg-Smith sees this post, for the record, the world saw you smile when you crossed the finish line and congrats on the silver medal. I hope you took some time to celebrate!
So once your Hard Money lender is paid off and your check is in hand it is time to celebrate. I like to set a goal when I originally purchase the property. Nothing crazy just something to represent the hard work, for example taking my wife to a really fancy restaurant, getting a new chair for the house or something small, but something you would not normally do. Don’t overdue it, be conservative. But do something fun and Celebrate. By the way, if by some slim chance Dale Begg-Smith sees this post, for the record, the world saw you smile when you crossed the finish line and congrats on the silver medal. I hope you took some time to celebrate!
Friday, March 26, 2010
Last Mogul Field
Once the second jump is done there is still a mogul field that cannot be overlooked. You can see the finish line right ahead but if you focus too much on the finish you will hit a Volkswagen size hump and fall over. This will ruin your chances of a finish let alone the hopes for a medal. This last mogul field is overlooked because it is a bit smaller than the others but it’s important – it will make or break the race.
This last mogul field for a real estate investor is finding the buyer. In reality if you have done everything else right up to this point finding the buyer should not be too difficult don’t spend the money until you have it in your hand. My philosophy is very simple. A. Be the 3% under the other comparable homes in the area B. List with a quality agent and don’t skimp on the Buyer agent commission. I would get a discount from the seller’s agent but make sure the buyer’s agent gets a full 3% commission. Make sure to put in your contract the amount that the buyer’s agent will receive. Most contracts just state the total commission that is paid. Create an addendum to the listing contract that shows exactly how much the buyer’s agent and seller’s agent will receive C. Have the house better than everyone elses. I don’t care what market you are in, if you are the lowest price house and the nicest home in the area you will sell, fast. That is the key. Sell Fast and get on to the next deal. There is a cost to hold the property, not just the cost of your money, but there is an opportunity cost on the next deal that you may miss, or something else you can do with the money. Holding the property also comes with risks. Too many investors think you can always start high and come down over time. This is stupid! Price for what the property is going to sell for. Too many investors think that some idiot from another state (like California) is going to come and pay more than what the property is worth. Price the property for what it is worth and then discount it 3% and you will have buyers coming. In some cases you will get more than the asking price because you may end up with multi offers. Yes you heard me right multi offers in this market place. The key is if you are the best home at the best price people will fight over it.
The Last Mogul field is easy if you have the right strategy and you don’t plan on a Jet engine to push you faster to the finish or plan on some idiot to over pay for your property.
Jump To Last Impression
The second jump is the last chance for the medal contender to make up for lost time by getting some distance or by throwing down a serious trick for some added points. Having a good knowledge of the race you have ran so far and how well you landed your first trick will help you.
Your Rehab needs to give people a reason to STOP the car. I used to think that outside landscaping did not sell a house. Boy was I wrong. If people don’t like the outside you will never get them in the inside. Now don’t overdue it! Again look around the neighborhood. You only need to be the same or a little better than you neighbor. I make up for this by doing little or nothing in the back yard. If they like the front yard and they like the inside they can do their own work to the back yard. You have to know when to throw down a serious trick and when to just go for the speed. This is a serious judgment call that can not be overlooked.
You don’t have a second chance to make a first impression. As a real estate investor you have to look at homes the way buyers do. Buyers are looking for the best home, for the lowest price in an area they are happy with. Although you may not think that you are in competition with homes in other areas you are wrong. Buyers are thinking am I willing to drive an extra 15 minutes to work if I can have double the size home? Or would we rather be in the city and have a smaller home but no commute. In being successful you need to look at what buyers are looking for in a home. Simply, you need to be the nicest home with the lowest price in your area and the home will sell. Homes sell every day and your home will sell if it is the lowest home and in the best condition.
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