Hard Money Lender qualifiers

[Cedric Edwards]

I'm new to real estate investing and my main purpose for getting involve is having a cash flowing stream of income that will eventually replace my current 9-5. My question is with me being new, how successful would I be at getting a hard money loan, like what do they look for? How do I approach? What would I need to qualify besides a solid deal analyzation?

[Andrew Postell]

@Cedric Edwards a Hard Money Lender will want to analyze your "exit strategy" for their loan.  Meaning, how will you pay them back?  So if you are flipping the home, they will analyze each property to make sure you can sell it at a profit.  They will usually lend you 70% of the After Repair Value on the property.  If you are "buying and holding" the property, they will generally want you to be PreApproved with the lender who will be refinancing you out of their loan.  The refinancing lender will tell you what their refinance "loan to value".  The hard money lender will still analyze the deal but they are more concerned on the refinance step to make sure you are good.  Hope this helps!