Hard Money Loans – 5 Things You Must Know

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Looking to get started in real estate investing? Hard money loans are normally the first things that people turn to when investing into real estate but if you move to fast you may take a deal that is not the most beneficial to you!

If you want more information on private money lenders as mentioned in the video check this out
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I have used hard money lenders in the past I think on 3 deals in total. So there is definitely a time and a place to use them!

This video breaks down a lot of the things that hard money lenders do not normally tell you about because they do not want to scare you off.

But I will always be honest with you and tell you exactly how it is!

Did you learn anything in this video that you did now know before?

Comment below and let me know!

[LarryFeingersh]

We are a private hard money lender in Texas and we do charge a 2-3 point origination fee (depending on term) but we do NOT charge for appraisals, underwriters, document prep, or any of that! We don't even charge a pre-payment penalty if you pay off your note early. We try to only loan on projects that will be a win/win for us and the borrower. Very educational, thank you for sharing.

[AllthingsOSK]

The difference between hard money and private lending is that hard money is backed by real estate collateral and are typically not credit based for decisions. Private money lending typically use credit as a determining factor and are not necessarily collateral based.

[arebollar]

I like how you added your course Add there lol😂

[crazy]

You are right about the contractors part. Im a contractor and nothing is getting done without a signed contract and a downpayment. A lot of "investors" dont like to pay and they come with all kinds of excuses. A lien on the property fixes the problem 🤣

[sidequestplays]

Great video! I learned so much, you did a great job of making that information easy to understand.

[thewholesalecoach]

I can vouch the course on private money lending is SUPER legit 💯💯 tons of value inside! Appreciate the content as always brother 💪🏾

[devinlopez]

Great subject, you are absolutely right about the Hard money lenders those things you talked about is never plainly explained by the HML, hopefully this information helps others make an informal decision if they chose to use a HML.

[fourstars]

Just sold a property today, arv was $320, 000. Sold for $395k. Their arvs are always low, I think they do that on purpose

[Charliespathwellness]

Thank you soooo much! Because the internet make it seem like the hard money release the rehab fees for the rehab. I just learned today the rehab fee is held in escrow.

[uendygarcia]

Thank you for sharing valuable information for those who are new in the real estate market

[LawrenceBland]

Great info. We defintly have to talk. I'm going to check out your link. I'm very experienced in rea estate (30 yrs) took a short hiatus a while back for personal reasons and of course covifld. Now 100% back in the game.

[elle]

Thank you for your info. Wondering if you could give me advice. I am working with a Hard Money lender. I get the fact that the closing and interest costs are high. I am not a flipper. I need the loan to purchase a small townhouse which only cost $90, 000. My father is loaning me $57, 000. Hard lender loaning $33, 000. My plan is to buy, move in, sell the condo I currently own which is worth between $150, 000-$170, 000. Then pay the first mortgage ($43, 000) then this second mortgage. I HAVE
Please help!!!

I am concerned of signing papers which could mean lender gets my property. And also why is lender asking me to put him on my home owners insurance???

[talentekhuzwayo]

I thought the point of hard money lenders is that they loan u quick money, for around 6-9 months & u only have to pay the principal & interest after that time period in full

[XinLao-zl]

Most Hard Money Lenders list their fee's on their website. Many also have a calculator on their site that shows your upfront cost and profit. Yes you do need some funds for the rehab to pay for the work first, then pay for an inspection, then wait for the draws to deposit into your account, while still paying interest payments every month.

[toneiv]

How to convince private money investors to fund your deals ???

[MikeOtranto]

Great video! The fees drive yield for the lender. This is one reason why I prefer to work with private money lenders. Though, if the deal is good enough I will borrow institutional hard money.

[MrMojoman]

What's the best way to get a loan to buy a house you want to live in for only two years, repair, then sale? I cannot get financing because I am not a business/real estate entity and while I have good credit, the DTI is too high for traditional routes.

[markworthington]

Most people that aren't investors don't understand complex financial deals. No mention of how quickly they can process a loan, which is extremely important. I've had a loan within 5 days!! Once a relationship is built, I get top tier terms that beat every bank. Also no mention that traditional banks and mortgage companies do not lend one penny for rehab costs. The interest only payments are just a part of the expense column for my accountant to deal with....the cost of doing business.

[johnkesinger]

I completely inform my borrowers of all the costs on the first call. Only fees are origination, service fee and Title/Insurance costs. Rehab is escrowed with draws. Have had many successful projects

[Alessandro]

Thank you for the video. I was under the impression that HML could also be obtained by banks.