Hard Money Loan???

[Justin Moon]

Pros, cons?

The realtor I work with found a foreclosure that looks promising if I put in the work. I went for a viewing yesterday, and it needs a bit of work but I can see the potential in it if I buy it for the right price.

While we were viewing the property, he mentioned something about a hard money loan. This was something I have never heard about before but the realtor gave me some literature and after doing some research, it is a very interest strategy. At the end of the day, what are the downside risks if I chose to use a hard money loan to conduct repairs in order to re-fi out of the hard money loan?