How "Hard" is it to get Hard Money for a flip?

[Jake K.]

Hi,

I was curious what the process is, and what possible pitfalls there are for someone, particularly a beginner, to obtain hard money for a flip? ty!

[Stephanie Medellin]

Originally posted by @Jake K.:

Originally posted by @Jason D. Lewis:

@jake k. 

There is still a charge on the house and if it goes to forclosure, it rests on you. Avoid hard money or private (all the same to me” unless you have a true exit strategy. IMO that strategy shouldn’t last longer that one year and you best be sure you can handle to load. 

Definitely makes sense, its a higher risk form of funding forsure, but seems like a good option for someone who doesnt want to rely on their own credit and does have an exit strat

 Your credit is on the line with hard money loans just like other loans.  The lender will foreclose on the house if you don't pay, but the foreclosure will also be on your credit report.