To Hard Money Or Not To Hard Money Is The Question

[Darrel Heard]

I am considering hard money loans, but definitely am not as familiar with that type of financing and from what I do know, may be at a high interest rate and also have to pay the loan back in a short period of time. Any and all information regarding this type of financing or other steps that would enable me to begin my real estate investing, would be greatly appreciated.

[Don Konipol]

I have been a hard money lender for the last 10 years. Hard money should be used only in very specific and limited circumstances. Many real estate investors use hard money as a substitute for conventional financing when conventional financing is not available. This often makes no financial sense and the end result is the investor not accomplishing their goals. Hard money can not be used successfully long term or on investments with average profitability. On these type situations the borrower ends up paying all profitability and then some to the lender.