What is hard money lending and how can I use it to buy investment properties?

What is hard money lending and how can I use it to buy investment properties?

Have you heard of hard money lending?  It's kind of like a legal loan shark, hard money lending is basically private individuals or equity firms who will lend out their money so that you can buy a property. If you don't have all the cash for it upfront now you can't necessarily pay a hard money loan with a traditional loan unless you're doing some sneaky investing but let's say that you know this was an experience that I had recently I was buying a property from a wholesaler and it had to close fast we only had two weeks to get it closed so I couldn't get a traditional loan on it and wait 30 to 45 days for the lender to finish the loan so what I did is I went to the wholesaler said hey I've got all this money I've got all these assets I'm very well qualified for a traditional loan but I need cash to be able to buy this property fast so they gave me a hard money loan I still put my down payment and then they lent me their own money for the rest of the purchase price and we still had insurance and title insurance and all those things all done on the up and up and I was able to buy the property and then I refinanced it into a traditional loan a month or two later so wholesaling can obviously you're paying a higher interest rate on wholesale loans so it can get very expensive especially if you're using hard money on flipping and the flip is going to take you six or seven months it can get really expensive but if you've got an opportunity to buy a property you want to hold long term you just got to refinance you might only need to keep that hard money loan for 30 days it's really not too terribly expensive and it could help you get into a property that you might not otherwise be able to buy in time so if you need a referral for hard money lenders let me know I've worked with several in the past.

 

What does this mean to you? If you're even a little bit interested in learning more about participating in the Phoenix housing market as a seller, buyer, or investor... you NEED to know this stuff! Or at least work with someone who is obsessed with the market stats. Reach out to me today so we can start working on making your real estate dreams a reality!

Here are more videos like this!

5 Homebuyer Tips
Here are five tips for navigating the home buying process.
3 Financing Tips
If you are planning on buying a home using a home loan then these three tips will help you get prepared for the financing process.
Credit Score Ranges & Factors
A credit score is a number between 300–850 that depicts a consumer's creditworthiness.
Required Mortgage Documents
Every lender requires documents as part of the process of approving a mortgage loan. Here are documents you’re generally required to provide...
How to Improve Your Credit
Credit scores play a big role in determining whether you’ll qualify for a loan and what your loan terms will be.
The Home Inspection Process
After your offer gets accepted, you’ll have an inspection period. This is your opportunity to have a licensed inspector canvas the home looking for common issues prior to moving forward with the home purchase.
The Appraisal Process
Once you are under contract, your lender will send out an appraiser to verify the purchase price is in line with the property’s value. Here are the two most important things to know about the appraisal process.
Homeowners Insurance
A homeowners insurance policy will protect you against certain losses and damage to your new home and is generally required by lenders prior to closing.
How To Buy in a Tight Market
Here are five things tips that can increase your chances of getting your dream house in a competitive housing market.
Is the Buyer Pre-Approved, or Not?
When selling a home, it’s important to understand the different types of loan approvals that you will come across.
What skills should my realtor have to help me buy an investment property?
What skills should my realtor have to help me buy an investment property? You may be getting ready to invest in real estate and you might wonder what skills does your realtor needs to have. Here are a couple of tips to help you select a realtor that can help you buy an investment property. 1. Do they know how to Calculate cap rates and run comps and cash on cash returns? 2. Does your agent own investment property?
Buy and hold vs flipping a property pros and cons
Buy and hold vs flipping what should you do? There are two different ways to make money in real estate. One is by buy and hold, which means you buy a property at market value, keep or hold it for the long term, and sell it when the timing is right. The other way is by buy-and-flip investing. In this video, I go over some pros and cons of each strategy so that you can decide which one might be best for your situation! In this video, I cover the pros and cons of investing in a Buy and Hold strategy vs. bu
How Much Money Down Do I Need to Buy a Rental Property?
How Much Money Down Do I Need to Buy a Rental Property? In this video, I'm going to talk about a question a lot of first-time investors ask: how much money should I put down on my first rental property? The amount of money you need to invest in a rental property is the down payment. The more money you put up front, the lower your mortgage payments will be over time because you're borrowing less. If your goal is to protect your investment and build wealth, then it might make sense for you to put 20% or mor
Beginners Guide to House Hacking
Merrill shares his beginner's guide to house hacking. In this video, I’m going to demonstrate how you can use house hacking as a strategy for investing in real estate. House hacking is the process of buying an investment property and living in it, then renting out rooms or units on Airbnb, and using that income to help pay your mortgage and other costs. House hacking has many benefits: It's much easier than trying to find a tenant; there are tax deductions for your rental income; if you live with roommat
What is hard money lending and how can I use it to buy investment properties?
What is hard money lending and how can I use it to buy investment properties? In this video, we're going to explore what hard money lending is and how you can use it to buy investment properties. Hard money is a type of financing that's used by investors who are looking for quick cash but don't want the hassle of dealing with traditional lenders like banks or mortgage companies. The term "hard" refers to the strict requirements that go into getting approved for these funds. This includes proof of your in
Is it good to buy a rental home with solar or a pool?
Is it good to buy a rental home with solar or a pool? In Arizona many properties have pools and you may be curious if purchasing a home with a pool would be a good option. Solar panels are also a hot topic. In this video, I will teach you about two different strategies for investing in rental properties. My goal is to help you make an informed decision when it comes to buying your next property! In this video, I share some of the best strategies for investors who are looking to buy a rental home. -Is
What to look for in an Investment Home?
Merrill shares his list of what to look for in a rental home or investment property. There are a few key features that we like to look for when we are buying long-term hold properties. One of those things is a home that doesn't have very much carpet. All of the living areas should have some kind of hard flooring. Carpet can tend to look old and worn. Another big one is for the home to have a newer air conditioner or roof. Both of these repairs can cost a pretty penny, so I want to avoid anything that will
Real Life example of Purchasing a Rental Property and its Cash Flow
Here is a real-life example of purchasing a rental property and how it has cash flow. Investing is one of the most popular topics on youtube. But there's not much out there that shows real-life examples of what investing in property looks like. I'm going to share an example with you today, and then break down how this investment would work, so you can see for yourself if it's something worth considering!
Purchase in my market; or others?
Should I be purchasing in my market or looking at other markets? If you’re curious if you should be buying in your primary market or possibly in another market this video is for you.
How do you know if you're ready to invest in real estate?
How do you know if you're ready to invest in real estate? Are you thinking about investing in real estate? This video will help you figure out if now is the right time for you to get started.
Do you need cash to buy investment properties in Arizona?
Many times our clients ask us about buying investment properties and they want to know. Do you need cash to buy investment properties in Arizona? Facebook:https://www.facebook.com/BigHelperGro... Instagram: https://www.instagram.com/bighelpergr... Website: https://merrill.bighelpergroup.com/ 480-466-6320 Merrill Jencks
How many mortgages can you have?
How many mortgages can you have? How many rental properties can you have? Are you wondering how many mortgages you can have? In this video, I'll share the number of properties that are allowed to be financed by a mortgage. And I'll also discuss some other factors that can affect your ability to finance more than one home. Facebook:https://www.facebook.com/BigHelperGro... Instagram: https://www.instagram.com/bighelpergr... Website: https://merrill.bighelpergroup.com/ 480-466-6320 Merrill Jencks
How to Find Funding for Your First Investment Property
How to Find Funding for Your First Investment Property I'm going to share with you a little bit about how to find funding for your first investment property. This is a really important step in the process, and it's one that many people overlook or don't know where to start. In this video, I talk about some of the different sources of financing you can look at when looking for ways to fund your next deal! You are going to want to start by speaking to a lender to find funding for your first investment prop
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Post a Comment