Rental Property Investor · Denver, CO · Member since 2016 · 6 posts · 2 votes
Hi all! I'm new to the forum. I am interested in learning more about hard money loans (both sides of the deal). I'd like to know about the number break down, risks/rewards, how to find investors that lend, how to find properties that both sides can be happy about, how this method compares to other low/no money down options, timelines, legal, etc...
If anyone has any book or website recommendations please let me know!
Lender · Pompano Beach, FL · Member since 2013 · 13 posts · 5 votes
10y
Chris:
Welcome to the site. Hard money is typically loaned at 12% with 3 points and one year balloon. Loan to value is typically at 65%. From the lender side I find that most successful borrower are using the money for short term rehab and flip. Some have bought properties during the down turn that will still cash flow with these terms but that would not be a typical or prudent use of funds. Hope this helps and welcome to the site.
Hi all! I'm new to the forum. I am interested in learning more about hard money loans (both sides of the deal). I'd like to know about the number break down, risks/rewards, how to find investors that lend, how to find properties that both sides can be happy about, how this method compares to other low/no money down options, timelines, legal, etc...
If anyone has any book or website recommendations please let me know!
Thanks,
Chris J.
There are hard money lenders on this site...so go to their websites
I have found in the ""file download"" section some great spreadsheets and cost break sheets to review opportunities with
Hard money is mainly used for short term investments, due to high interest rates. Mostly fix and flips, refinances, ground up construction, buy n hold acquisitions, etc. It allows the investors to acquire the property quickly, which in most markets is the hardest part. It also allows them to finance all of the rehab, since most HML are ARV based. Many investors also use hard money due to not being able to acquire conventional loans for investment properties. Even if they can get conventional, and the property allows conventional, then the time to close is way too long for most of these transactions. Overall, investors use hard money for speed and being asset based.
As a lender, it is very safe due to being in 1st position TD and capping out around 65-70% LTV or ARV. High interest rates secured by real estate make a great, safe high ROI. They get their money back fast and can continuously lend it out for good deals.
Hope this helps. Feel free to contact for more info. Good luck!
Oceanside, CA · Member since 2017 · 23 posts · 9 votes
6y
@Travis Sperr are you still lending hard money? I am looking into getting into the business and hoping to chat with people who are experienced and willing to share. I’d love to chat one day. Please let me know if you’d be willing to share some information with me. Thanks and all the best