“Using Hard Money the Right Way”

A couple of years ago, I received a call from an potential investor/house flipper. He told me that he had given up his cushy job in corporate America. Even though he was making good money, the job was going to kill him and at 35, he felt it was time to make the plunge to do what he said he was born to do. You could just tell, he had passion and conviction.

He had been working part time for a house flipper for 5 years and felt, he knew enough and now had enough connections, except for getting the money. I set up a lunch for him and a hard money lender that I trusted.

That was two years ago and 12 houses later, 7 of the homes I did the end loans, so it is a steady source of mortgage business. Here is the moral of the story, he is now doing his next house with his own money. He will continue using the hard money lender, most of the time, but at some point, it may not be necessary.

Hard money lenders have their place, a valuable one, and used properly can make investors a lot of money.

image courtesy of Kittisak/freedigitalphotos.ne