Real Estate Investors that fix and flip homes as a job or a hobby all start by asking, “What is hard money?” If you are asking yourself that same thing, read on to find out how the answer can help you in the fix and flip game.
A huge niche in the real estate market is the “fix and flip,” where investors buy homes (sometimes bank owned or foreclosure properties), fix them up and resell them at much higher values than they were worth in their previous state. This can earn these investors some serious cash. But to make money, you’ve got to spend money… and if you don’t have it yet that’s when that all-important question, “what is hard money” comes in handy.
With these types of loans, you can get cash fast to make an offer on those quick-selling foreclosure or even auction properties and then make repairs and upgrades to make them desirable to homebuyers. These loans typically have quick approval turnarounds, little or very straightforward application documentation and quick access to cash! They really are a win-win solution. These are a great alternative to traditional financing that does not give the borrower access to cold hard cash. Cash is especially important for auction properties, so these loans put cash in hand for investors.
When you ask what is hard money, it’s also important to ask other questions such as what is the timeline for approval, when will I have cash in hand and what are the terms? These questions are all important to the loan, and your lender should be able to answer all of these questions for you. Typically, approval times are fast, sometimes cash is even in hand the same day, and lenders don’t pay much attention to the typical factors that traditional lenders would look at such as credit score. Hard money lenders just want to make sure you have the ability to pay back the loan, and if you don’t, that you have the collateral to ensure they retain the money the put out.
Once you have the answer to “what is hard money” you are ready to meet with a lender to get your hard money loan.
As with any important decision, initial research is a key element of the process. You want to ensure that you find a reputable lender who you feel confident is going to work to negotiate the best terms for your loan.
What are you waiting for? Turn your loan into a money-making investment career or hobby!
Once you’ve gotten the hang of these types of loans, and the fun and exciting process of fixing and flipping homes, you may repeat this process again and again, possibly turning what started as a hobby into a career. Once you get a good reputation for having the ability to repay the loan, you will have a much easier time obtaining future ones.
Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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