Understanding Hard Money Lending

[Amelia Foronda]

I'm not looking for step by step but wanting to make sure my processing is correct.

I'm a realtor and have found a property I believe has potential for a great flip.

With absolutely nothing to offer money wise I would hate to let this opportunity slip between the cracks.

Here was my thought process after listening to podcast after podcast and reading constantly about hard money lenders.

1) Gather all information (comps, ARV, estimate from reliable contractor, all related documents, etc.)

2) Follow through with hard money lender to pay cash for property and renovations with agreed terms

3)Purchase property

4)Renovate

5)Sell

6) Pay back hard money lender (amount borrowed plus interest)

7)Done Deal

Obviously this is very over simplified, but I wanted to make sure my idea of what a hard money lender could/would do wasn't too far off for someone in my situation.

Am I missing anything? I'm ready to take that leap and ! am open to suggestions.