How do hard money loans work???

How do hard money loans work???

I've always been told to receive a hard money loan, you have to pay money up front. Is this true? How does all that work?



It depends on the HML and the situation. I've called around and most require you to put funds into escrow, generally $1,000 and up to 15% of the loan amount. You get the funds back when you sell, and the purpose is for cost overuns or if you have difficulty making the monthly interest payments. Everything is negotiable, however.

There are a lot of good posts on here about HML's, including a recent one about Brookview Financial and their terms.

Hope that helps and good luck!



I have worked with
they have a pretty detailed website with most of the information you would need to know.



Luck is when Preparation crosses paths with Opportunity!

Hard Money

Here is another good hard money lender reference. They do not require a monthly payment. The draw back is they are not lending in all 50 states. Go to there website and they tell you what states they will lend in.


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