How Hard Money Loans work in detail
Hello BP!
Can someone please explain to me IN DETAIL how Hard Money loans work? I understand that they look at the ARV of a property and then lend you x% of that (usually 70%), but what are the actual steps of getting the loan? Once you get the loan, do they just give you a stack of cash and then you just buy the property using the cash? Do they send the money directly to the listing company and then there's no mortgage on the property but you just have a private loan to repay? Do you just get a mortgage with the HM lender? I'm looking for a really detailed response so I can fully understand this option.
Thanks in advance.