Hard Money

Without the right financing, the rehabber's ability to act quickly, purchase the property, and be able to renovate it properly will be severely limited. These loans were designed to address the very specific needs of the rehab investor. Each loan is for a term of 6 months to 2 years, but may be paid off at any time. There are no seasoning issues or pre-payment penalties.

What exactly is "hard money"? It's a real estate loan you get from a non-traditional lender, secured by the property and often not by you. Hard money interest rates range from 14% to 20%.

The lender also charges "points" (one point is one percent of the loan amount, usually financed into the deal), which can range from 1 to 10.

Why would someone use hard money? Because hard money lenders are primarily concerned about the property you're buying, and not solely about you as a person. Typically, hard money lenders will loan you up to 65% of the after-repaired value of the property.

The benefit of using hard money instead of bank financing is that if you buy a property that is worth 65% or less of the after-repaired value of the property, you can get into the deal for little or no money down and get the funding to purchase and rehab your property. Hard money lenders are much easier to work with than banks.

HARD MONEY DEALS ARE OFTEN CASE BY CASE. LENDERS/INVESTORS ARE LOOKING AT DEALS MUCH MORE CLOSELY. BE VERY SURE OF YOUR VALUE. LOCATION AND A STRONG EXIT STRATEGY. EQUITY, CREDIT AND OTHER FACTORS ARE OFTEN USED TO DECIDE EACH DEAL. GOOD CREDIT HELPS, BUT IS OFTEN NOT NEEDED. EQUITY, EXIT STRATEGY AND DEALS THAT MAKE GOOD FINANCIAL SENSE ARE WHAT WILL GET YOU FUNDED. PLEASE ONLY SUBMIT DEALS THAT MAKE GOOD SENSE.

IF YOUR DEAL MAKES SENSE WE WILL GET IT FUNDED!

CLICK HERE TO SUBMIT

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