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Understanding Home Ownership - The Beginning

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  1. Module 1: Understanding Mindset
    9 Lessons
    |
    1 Quiz
  2. Module 2: Understanding What you want your money to do for you?
    6 Lessons
    |
    1 Quiz
  3. Module 3: Understanding The Types of Real Estate Investments
    7 Lessons
    |
    1 Quiz
  4. Module 4: Understanding The Resources
    11 Lessons
    |
    1 Quiz
  5. Module 5: Understanding The Finance
    15 Lessons
    |
    1 Quiz
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Hard Money

“Hard money” is financing that is obtained from private business or individual for the purpose of investing in  real estate. While terms and styles change often, Hard Money has several defining characteristics:

  • Loan is primarily based on the value of the property
  • Shorter term lengths (due in 6 – 36 months)
  • Higher than normal interest (8-15%)
  • High loan “points” (fees to get the loan)
  • Many hard money lenders do not require income verification
  • Many hard money lenders don’t require credit references
  • Does not show on your personal credit report
  • Hard money can often fund a deal in just days
  • Hard money lenders understand when the property needs rehab work

Hard money can be beneficial for short term loans and situations, but many investors who have used hard  money lenders have been placed in tough situations when the short term loan ran out. Use hard money with  caution, making sure you have multiple exit strategies in place before taking out a hard money loan.

To find a hard money lender, try the following tips:

  • Ask a Real Estate Agent
  • Ask a House Flipper
  • Check out BiggerPockets’ Hard Money  List
  • Newspaper
  • Google It
  • Mortgage Broker