What is Hard Money? How to; Should I ; Pros and Cons

[Coral Hernandez]

What is a Hard Money Loan?

A loan that is Secured by a piece of Real Estate Property

The funds are generally issued by Private Investors or Companies

The Borrower will receive Funds based off of the Property being purchased

This is considered an All Cash Offer and Transaction

Typically, the Length of Loan is a 12 Month Term

A Hard Money Lender is an asset-based lender

Closing Times are generally 14 days or less

Finding ways to use other people's money along with your own is essential in Real Estate Investing, that is, if you want to be successful.

You are giving yourself the ability to invest in properties you normally would not have been able to, or would have had to wait substantially longer before doing so.

Depending on your Real Estate Strategy, the number of houses you can purchase and Flip/Rehab in a given time period, will determine how successful you are. The type of Financing you receive is critical to this process and will determine how many properties you can purchase in a year and at what cost.

Hard Money allows for an all-cash quick-to-close option when purchasing “Distressed” or Value-Add Properties. Don’t lose out because you didn’t do your homework!