Hard Money Lenders

Hard money lenders are one of my favorite ways to finance and sell properties.

When I gather information for my buyer’s criteria sheet one of the questions I ask potential buyers is: Do you have cash to purchase? Then I ask: If not would you be interested in using my hard money to fund cash transactions?

This way I can create a wholesale buyer using my finance provider.

Hard money is a cash purchase resource. As we know cash is king. Cash can help you beat out others that do not offer cash.

When using hard money keep in mind that the lender should only be used for short term financing. They are too expensive to keep long term. Either sell quickly or refinance.

Where do you go to find these people?

http://www.deangraziosi.com/node/4080

I appreciate your time. Thank you.

You can find one at a local RE meeting. Go there and see if you can network and meet a good lender. It is wise to use a HML, it is always best to use other peoples money than your own. You can get so much more done with a good HML and it will make things much eaiser. HML's are the best.

Jeremy

Hard money lenders are fantastic because you are able to use other people’s money. Simply enough, the more of other people’s money you use the higher your ROI (return on investment) will go. Also, the more of other people’s money you use the less your risk takes on. Truly, if you use 100% of other people’s money and the project you are working on fails you have nothing to lose. Some may argue that you can lose your credit but as we know this can be worked past. Because of the expense hard money carries with it always be wise on how you use hard money.

It is good to work with them when traditional sources of financing are not suited to your situation. A good number of them can be found on the following sites.

REI Club

Georgia Hard Money Lenders

Hard Money Guide

Im looking at hard money lenders and trying to work through the numbers. As you can tell Im also very new to all of this and feeling quite over whelmed. But my question is this: one lender Im looking at states that they lend two ways, one is 6 point and 15% intrest and another is 8 points and 10% intrest. There loans are for 6 months. It also states that "Investor Rehab Loans will be 100% of the purchase price and 100% of the repair funds so long as the LTV does not exceed 70% of the ARV." My question is what does all this mean in plain english? I dont mean to sound stupid by asking about all of this. I did read some of the comments nstreet posted and I also read his post about private money lenders. But what does all this mean and what does it translate out to in dollars and cents. lol I feel like a stoneage man here.

You have to look at your numbers on the deal your working and figure out if its worth using HM. If you are buying to flip it then make sure you have a buyer ready so you are using the HML short term. If you are buying to hold you want to cash out ( refi) the HML as soon as possible. Most banks wont let you refi unless you have 6 months of seasoning. But you can look around for a local bank or even a credit union and see if you can get a loan without seasoning.

Thanks Superstar for your info, will use it. lol it does get confusing.

In today's credit market for purchasing investment real estate a hard money lender is often the best option to finance a short term investment property.

Hard money is typically used for a real estate investment that has good equity and either needs to be funded quickly or does not qualify for conventional financing. Often the property is a bargain but the borrower does not have enough cash and credit to get a bank to lend on the deal. I have even had people buying for their own residence and need hard money as a bridge loan so they could close a deal before a deadline. A few days later permanent financing was in place to pay off the hard money lenders.

re menendezc, any question that starts where do i find... or how do i... can usually be answered by 'google'