Hard Money – Quick and Easy Access to Real Estate Loan Options
This secret to success in real estate investing has the ability to do the same magic for you.
And the secret is…quick and easy access to hard money.
That is it. We are not talking about having a good luck or an expert knowledge to make it big in the world of real estate. The only thing you need is money to fund your deals.
Now what is hard money? Don't worry, it isn't hard to understand. Hard money is lent against a piece of real estate to an investor for a short period of time and it is basically secured against the collateral you are investing in.
Hard money is funded by a private investor on the basis of the property only. They don't look for the credentials of a borrower i.e. they don't care about your credit score or job history or your monthly income.
The only thing that they are concerned about is numbers. If they can see that your property is good enough to make profits after you've purchased and fixed and flipped it, then they will fund you the money.
That's why; investors should always be looking for better properties. The lenders would keep changing their loan terms and conditions along with the interest rates but they will always be more willing to lend on properties that seems to be promising.
The lenders usually send 2 or 3 evaluators to look at the property and they draw comparables on individual basis, which is completely unbiased. If there comparables match with your comparables, then you'll get the loan within 7 business days but if there's a huge difference between the two, then the lender will discuss the situation with you.
After the discussion, you can either agree on getting less funding than you have asked for or you may also look for another deal if you think it won't be profitable enough. But make sure that you don't get emotional about it.
Hard money lenders have a set of rules and regulations, which need to be followed by the investors. Their rules are not similar to those of banks or financial institutions but these rules are only based upon the piece of real estate you are buying.
And the secret is…quick and easy access to hard money.
That is it. We are not talking about having a good luck or an expert knowledge to make it big in the world of real estate. The only thing you need is money to fund your deals.
Now what is hard money? Don't worry, it isn't hard to understand. Hard money is lent against a piece of real estate to an investor for a short period of time and it is basically secured against the collateral you are investing in.
Hard money is funded by a private investor on the basis of the property only. They don't look for the credentials of a borrower i.e. they don't care about your credit score or job history or your monthly income.
The only thing that they are concerned about is numbers. If they can see that your property is good enough to make profits after you've purchased and fixed and flipped it, then they will fund you the money.
That's why; investors should always be looking for better properties. The lenders would keep changing their loan terms and conditions along with the interest rates but they will always be more willing to lend on properties that seems to be promising.
The lenders usually send 2 or 3 evaluators to look at the property and they draw comparables on individual basis, which is completely unbiased. If there comparables match with your comparables, then you'll get the loan within 7 business days but if there's a huge difference between the two, then the lender will discuss the situation with you.
After the discussion, you can either agree on getting less funding than you have asked for or you may also look for another deal if you think it won't be profitable enough. But make sure that you don't get emotional about it.
Hard money lenders have a set of rules and regulations, which need to be followed by the investors. Their rules are not similar to those of banks or financial institutions but these rules are only based upon the piece of real estate you are buying.