The Truth Behind Hard Money
The brutal truth about hard money is most people seeking it out are not ready for the undertaking. They either have the wrong scenario, they have capital restraints, they lack the execution skills. And the lenders will fund you. They don't play judge and jury on a scenario. It just has to meet the basic guidelines. But that certainly does not make it a winner.
Hard Money will accentuate the underlining health of the deal. If it was a deal with problems, the loan will make it feel 100x worse and if it was a good deal hard money will feel like the bridge needed to get from distressed to rehabbed.
The actual financing structure of hard money is not difficult to understand or find. There's leverage toward purchase and then rehab money and the rate is 10% - 12% depending on market/borrower/lender.
All someone has to do is hint that they have something under contract and everybody comes running with financing options when sometimes funding is the worst thing that could happen for them.
The hardest part of this is identifying the winning scenario for you and then building the network that brings those deals in.