Hard money lenders are a wonderful source of quick money, which is lent on a short term basis for real estate investing, and secured by the real estate. The loans are based on LTV ratio and credit scores don't really matter.
These loans are usually in lengths from 6 months to a year maximum. The hard money lenders usually charge a higher amount of interest and most of the time also charge points.
What is the advantage of hard money loans? You can have the money quickly, usually within days. My investor showed the value to the hard money lenders, when he used it on a fixer property, that the banks wouldn't lend on. He got a hard money loan for the after repair value and fixed the property up in 3 months. Then, he put it back on the market and made an $112,000 profit and paid back the lender in 4 months time. It only cost him about $14,000.
The cost does seem high, but if what did he do? He got a home that he wouldn't have been able to get before without cash and he made $98,000. He is now doing this over and over despite the traditional banks all saying NO and the money isn't due until he is done with the project.
Since my investor showed me about the value of hard money lenders, I have started to use them myself. I now am buying fixer properties with none of my own money and making more money. I am being given money by people that I have never met, just so I can make money with my investments and the hard money lender is making $15,000 plus on a $150,000 in only 4-6 months time. No other investment pays them that well and I am making $100,000 on that $15,000 also. It truly is a win-win for both me and my hard money lender.
Since my investor showed me this technique, I have started to build a list of hard money lenders and would love to show you how these short term loans and lead you to riches as has my other investors.
Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739
© 2007 Todd Clark - Hard money lending can be your secret path through the investing maze
Todd Clark and the Friendly Home Team
Knipe Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)622-8739
I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard.
All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.
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