All Forum Posts by: Coral Hernandez

This one doesn't look to good. That is a big rehab for a first time flip. I would seek out a partner on this one to help; their advice and direction is priceless

@Shawn Melis

Hey we have heard of this across the board with many Lenders. They are pulling out of deals and shutting their door, because their investors are backing out. But, there are companies that are still lending. Most Hard Money Lenders that are still lending have: decreased their leverage by about 5% and required Min 6 month interest reserve, which basically means no payment for 6 months, so it's not really a big deal. 

  Being you can still close the deal, I wouldn't wait long to line up your next Lender! 

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!

Let's connect 

Hard money: “The Pros and Cons”

Pro

All CASH Transaction

Quick Closing Times (<14days)

All “Rehab Cost” are covered in Loan

Lower Leverage for Buyer and more Liquidity

Flexibility to buy Distressed and Value-Add Properties

Loan based on Property and underwritten so Borrower is Profitable

Does not show up on Credit Report

No "DTI" (Debit to Income Ratio)

CON

Higher interest rate than Bank

Shorter Repayment Schedule (<12 months)

More conservative evaluation of the Property’s Value

Not doing your research and working with a “Bait and Switch” Lender

Real Estate is one of the most dependable and powerful ways to grow your wealth. Shake off the Stigma of what you might think a Hard Money Loan is, and do your research.

How successful do you want to become? The FNMA (Federal National Mortgage Association, aka Fannie Mae) only allows up to 10 mortgages.

So, what are you going to do, stop growing your Empire? No. You’re going to seek out alternative financing and lending. And that is where your Hard Money Journey will begin, if not sooner.

Learning how to use O.P.M. ( Other People’s Money ) is imperative to becoming a Savvy and Successful Real Estate Investor...

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!

Hard money: “The Pros and Cons”

Pro

All CASH Transaction

Quick Closing Times (<14days)

All “Rehab Cost” are covered in Loan

Lower Leverage for Buyer and more Liquidity

Flexibility to buy Distressed and Value-Add Properties

Loan based on Property and underwritten so Borrower is Profitable

Does not show up on Credit Report

No "DTI" (Debit to Income Ratio)

CON

Higher interest rate than Bank

Shorter Repayment Schedule (<12 months)

More conservative evaluation of the Property’s Value

Not doing your research and working with a “Bait and Switch” Lender 

Real Estate is one of the most dependable and powerful ways to grow your wealth. Shake off the Stigma of what you might think a Hard Money Loan is, and do your research.

How successful do you want to become? The FNMA (Federal National Mortgage Association, aka Fannie Mae) only allows up to 10 mortgages.

So, what are you going to do, stop growing your Empire? No. You’re going to seek out alternative financing and lending. And that is where your Hard Money Journey will begin, if not sooner.

Learning how to use O.P.M. ( Other People’s Money ) is imperative to becoming a Savvy and Successful Real Estate Investor...

@Stephanie P.

We agree. If you can leverage other people's money and come out ahead, that's the way you grow and expand.