All Forum Posts by: Coral Hernandez

What is a Hard Money Loan?

-- A loan that is Secured by a piece of Real Estate Property

-- The funds are generally issued by Private Investors or Companies

-- The Borrower will receive Funds based off of the Property being purchased

-- This is considered an All Cash Offer and Transaction

-- Typically, the Length of Loan is a 12 Month Term

-- A Hard Money Lender is an asset-based lender

-- Closing Times are generally 7 - 10 DAYS

     Depending on your Real Estate Strategy, the number of houses you can purchase and Flip/Rehab in a given time period, will determine how successful you are. The type of Financing you receive is critical to this process and will determine how many properties you can purchase in a year and at what cost.

     Hard Money allows for an all-cash quick-to-close option when purchasing “Distressed” or Value-Add Properties. Don’t lose out on opportunities because you didn’t do your homework!

Referee Auction Sales

What is a Referee Auction?

• · Who?
  • o A “Referee” is typically an Attorney appointed by the Court to conduct the Auction of the Property. It’s their job to issue a report to the Court on how much is due to the Lender.

They will also prepare all documents, facilitate the transfer, and convey all funds to the Lender.

• · How it Works:
  • o First the Referee will read aloud the Judgement of Foreclosure. Based on the Amount owed in the judgement the Referee will request the Opening bid and start the bidding until there is Winning Bid
• o The “Winning Bidder,” in most cases, is required to put down 10% of the successful bid amount, and a predetermined time frame will be set to pay the remaining amount
• o Also, Traditional and Conventional Loans wont work. Banks will not lend for those type of properties. You will need All Cash, Private and/or Hard Money Loan.
• This is a good time for your Attorney to ensure the Deed and all Documents were drafted correctly. And it might also be a good time to pick up the phone and call your Hard Money Lender, is you haven’t already.

Hey Josh, 

There is some misconception about Auction Sales. You are most definitely able to use a HML. Its more these about having your ducks in a row before hand. Each Auction is different. Most require a down payment at time of winning bid, and then a predetermined set amount of time to pay the remaining balance.

 It very important to complete your due diligence first. Make sure your strategy is correct, and you have the right blend of your money and other people money this is can help maximum your total reach, leverage,  buying power,  and most importantly money  making ability. 

I am going to Post a blog here we did on Auction Sales, so you can a little more info. HML are great for auctions

Always ask your is it to good to be true? Nothing is free in life, especially when using other people's money. Be aware of bait and switches.

Hey also check out the Deal Machine... it's super ideal for people looking  to drive for dollars

Hey Don, 

   Derrick is spot on. You don't want to have an issue down the line. There is plethora of  creative alternative lending available. If you like we can connect and discuss further

Hey Steph,

   When it comes to hard money each lender can be a little different then the next.  As Kiwi said you can roll.the Rehab cost into it to meet that threshold. 

You can also look at doing a blanket loan as well. But it is something that is possible.

Hey Krysten

You raise some good questions and concerns here. Knowledge is power when it comes to this industry.  Experience is golden, whether on your own or learned through someone else. 

   Hard Mon3y: How quick to close? Min Credit Score? How much do I need to cover? Are Repairs included? What is the term? What kind of payments do I make(interest only, or w/principal)? Can I trust the Lender? Will the lender change terms last minute? How much skin in the game do I need? 

Each question or scenario will be case by case and directly affected by which strategy you choose to deploy. 

Let's Connect and discuss further,  to ensure you have the tools needed to make your best decision.

Hey Andres, 

Sorry just seen this. We'd be more than happy to help with your calculator issue. Kudos for using it. It is super important to know your numbers, as I am sure you know already. 

  But hey we love math. Let's connect so we can help you.

Hey Lesley, 

I like where your mind is at. The more questions you ask the more you will learn. As well as the people in which respond and lend advice all have their own strategy and different expierences that led them there.

     It's good to look at ways to use other people's money, with your own to purchase and invest in properties you normally would not have been able to, or would have had to wait substanillay longer before aquiring it.

I believe as in Investor doing Fix and Flips/BRRR, the amount of houses you can put through that process in a given time frame, will directly affect how successful you will be at it. Depending the type of lending you recieve, will determine how any properties you can purchase in a year and at what cost.

   Knowing your numbers (cost of loan), the process to obtain the Funding, and what is required,  is all super important when making a decision to put an offer in. Know your math.

   Let's Connect and we can talk more in-depth and discuss your questions and concerns