Understanding hard money

[Matt Schultz]

New to investing. We have 1 property rented out, and am looking at another. The property we are looking at is in need of work, but can get it for 1/3 of market value. And about another 1/3 of market value to fix up. Thinking of doing hard money loan on it. Want to make sure I understand the whole path.

You get the loan from the hard money lender and than fix it up. If using a hard money lender to buyand fix the property do you hold the title for the property or does the hard money lender? Once you are done fixing up the property to get a conventional loan to pay off the hard money loan, would that be primary mortgage or a second mortage if you own it already?

[Mark Safrin]

Originally posted by @Janina S.:

@Spencer Cornelia which lenders have you worked with? I'm in the Chicago land area and this seems like the route I want/ need to go.

I'm also in Chicagoland and can probably make a suggestion for you. You are also welcome to come to our office and discuss your plans over a cup of tea. :)

Cheers.