Hard Money Lenders

[Kenya Curtis]

Good morning! Has anyone here used Do Hard money loans for rehabs/flipping, or is anyone familiar with their practices?

[Kyle Gray]

Hard Money can be a useful tool at your disposal. When used properly it can greatly increase your ROI and free up your capital to invest in other projects; however, Hard Money Financing is not for everyone. Not sure how familiar you are with HM, but it is essentially a short term, high interest IO loan. The lenders I've dealt with charge you around 2-4 pts up front with an interest rate of anywhere from 12-18%. Most HM lenders require a 600+ credit score. A strategy that I see investors use often is getting a HM loan while doing a rehab on the property, and then doing a rate and term re-fi to a typical 15 or 30 yr program after the property has been renovated. This applies more to rental properties since you will be holding the property instead of doing a quick flip. Hope this clears up some of your questions about Hard Money Lending.

Regards,