Hard money loan question

[Kacper Rajewski]

Ok so what is the logic behind the hard money? Let's say that i have a house to rent and the numbers are there and i cash flow lets say 500$. What if i wanted to buy another house...? And another. And another. And another. And... Is there's limit to where i can borrow money and they just don't care that i did my Excel spreadsheet and it turned out that there will be profit from that house? As far as i understand the loan is given against my asset and not against my credit right? The rates on the hard money loans are high so is there's even a possibility on making any profit? 

[Ryan Kelly]

@Kacper Rajewski it sounds like you may be confusing hard money and non-QM private financing. Hard money loans are typically for short term projects like flipping or rehabbing with 6-12 month deadlines to pay them off. Non-Qualified Mortgage products are simply long term loans that are underwritten outside of the Fannie Mae guidelines. They could still be 30-yr fixed rate loans or DSCR loans. They will underwrite you and/or the deal depending on their qualifications. Don't use hard money for long term projects.