Hard Money Info & Sources

[Chester Straley]

I’m just starting to learn more about hard money. I’ve always been accustomed to putting 20% down, getting a HELOC, or using equity, as leverage, to borrow against. I don’t have a huge portfolio, but I have always been successul plus also flipped properties. I feel that access to capital will allow me to further my real estate investing racket. I just ordered “Raising Private Capital” and can’t wait to read it. Any tips or info sources on hard money would be greatly appreciated. I don’t feel comfortable using the sites on google, when I search for hard money. Thanks in advance!

[Frankie Woods]

I've used hard money once.  It was a simply process.  They focus more on the property than the borrower.  

My lender charged 14% interest only for one year with 5 points.  I paid approximately $7k in fees for a $65k loan.  Fairly expensive, but a realtively easy / quick way to nail down a great property.  

I would ask individuals at your local REIA or post in the "Ohio" forum. You can also call real estate professionals in your area (e.g., realtors, brokers, contractors, property managers" and ask for recommendations.

Happy Hunting!

[Tarik Turner]

Get you a good loan broker that can offer you some competitive options

[Chester Straley]

@Frankie Woods that helps, thanks! I had a client once mention his lender was analyzing the location & property...it was confusing to me, so he was probably using hard money also. What is REIA?

[Frankie Woods]

@Chester Straley Conventional banks will generally only do an appraisal and title search. Hard money lenders focus a lot more on the property itself as far as current condition, rehab estimate, after repair value (ARV), etc. So yes, he was probably using hard money or private money (e.g., family or friends).

REIA stands for Real Estate Investment Association. It's basically real estate meetups in your local area.