Hard Money Financing - Top3 Lessons

[Hugh Springer]

1. Confirm (or request) that a Debt Service Company is used

    - not just a promissory note for the upfront financing/funding. 

    - but a service provider that acts as an alternative for all the things you'd normally get from a mortgage company

2. Confirm that the Debt Service Company used, will provide you with easy access to: 

     - monthly/quarterly/annual statements of your pymt history

    - ideally, easy user login web or app access

     - 1098 or annual (interest payment) tax documentation mailed, emailed, or pdf download-able

     - alerts, notifications, and pymt scheduling options for: pymt due, pymt applied/received, outstanding balance, etc.

3. Have a legal advisor or counsel review your documents before signing.

These will make your ultimate exit strategy, post Hard Money financing period, much easier when:

- preparing & submitting paperwork for individual tax returns

- maintaining the note in good stating with consistent payments & digital payment history paper trail

- digital and/or easy access to documentation

- preparing for a Re-Fi, Conventional financing, payoff, or even Flip/Sale & deed/title reconveyance to remove the Hard Money Lein holider at the end of the note's term