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Updated about 10 years ago,

User Stats

163
Posts
51
Votes
Alexander Merritt
  • Investor
  • Baltimore, MD
51
Votes |
163
Posts

How Hard Money Loans work in detail

Alexander Merritt
  • Investor
  • Baltimore, MD
Posted

Hello BP!

Can someone please explain to me IN DETAIL how Hard Money loans work? I understand that they look at the ARV of a property and then lend you x% of that (usually 70%), but what are the actual steps of getting the loan? Once you get the loan, do they just give you a stack of cash and then you just buy the property using the cash? Do they send the money directly to the listing company and then there's no mortgage on the property but you just have a private loan to repay? Do you just get a mortgage with the HM lender? I'm looking for a really detailed response so I can fully understand this option.

Thanks in advance.

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