24 Jun 2013
Hard Money Loans: Buy Now Hard Money
Buy Now Hard Money is a hard money lending business that caters to real estate investors in the eastern Massachusetts and southern New Hampshire. They also provide construction and acquisition loans for single-family redevelopment, small multi-family and commercial projects.
Company: Buy Now Hard Money
Manager: Ann Bellamy
Geographical Area: All of Massachusetts east of Worcester, MA and all of New Hampshire south of Concord, NH.
What are some examples of the kind of real estate deals you primarily lend to?
We primarily lend to fix and flips as well as acquisition and construction for small multi-family and small commercial properties.
What is the profile of the typical investors you lend to?
We lend to companies in the business of redeveloping distressed single-family properties and small multi-family properties. We do not lend to people occupying a home.
Do you have a minimum or maximum loan size?
Our loan range is $50,000 to $1 million.
What is your typical loan period?
What do you look at when assessing a loan?
We look at the loan-to-value ratio (LTV), after repair value (ARV), the property’s location, rehab plan for the property, exit strategy, skin in the game, and experience level of the borrower.
What are the main reasons you would decline a loan?
We could decline a loan for insufficient cash or collateral, poor exit strategy, inexperience, poor marketing plan to sell the property, high LTV, bad location, or negative features of the property.
How important is a credit score to obtain a loan from your company?
Buy Now Hard Money does not use credit scores. However, if you have a good credit score and would like to supply documentation, it will strengthen the application.
Why should an investor consider lending from you?
Buy Now Hard Money is a specifically local company with a large network of local connections. We come to each property and can respond quickly. We make ourselves available at our own local networking meetings for education and communication with borrowers and potential borrowers.
We have many local references from experienced investors to new ones.
What is the difference between a good and a bad money lender?
Credible lenders don’t charge upfront fees. Upfront fees should only be paid to third party providers such as appraisers or attorneys. Buy Now Hard Money does not change the terms at the closing table, and we don’t charge undisclosed back end fees.
What should potential borrows look out for?
Investors should watch for upfront fees, which are not contingent on closing the loan, and carefully read the note and mortgage/deed of trust before signing. Newer investors may want to retain their own counsel, even though that adds to the cost of the deal.
Can a bad money lender lose money for a borrower?
If a lender commits to construction disbursements, but does not have the funds to disburse when the draws are due, that can cost a borrower their contractors and profit.
Also, a borrower can lose a deal if a lender commits to a loan but delays the closing and pulls out at the last minute because they didn’t get funds back from another deal.
Do you have some tips on how to avoid a bad money lender?
Credibility and reputation are important. Screen your lender, Google them, and ask around within your local network as to who they use or recommend for hard money.
Not sure what a hard money loan is? Read our article When hard money loans make sense to learn more!