Hi everyone just here to talk about Hard Money loans and to build a connection with REALTORS, Morgtage Brokers and Investors. im here to talk about and discuss with people about any scenarios they have im not looking to "spam" Im looking to build relationships so feel free to talk to me how you feel about hard money lending is it for you or is not what is hard money lending who are people that handle it?....
Bottom line just looking to build relationships and some feed back. "NOT SPAMMING"

What are some good websites that discuss BEING a hard money lender?

I know alot of investors eventually become hard
money lenders and that there is godd money in it.

there money to be made its about finding the right deal the one that makes sense because when your using someone elses money you should treate it as your own. There are plent of websites out there that discuss hard money loans.
Also if you have enough money yourself you can just lend out yourself without using other peoples money but you would need to build up some equity first.

My company deals with several lenders who are "hard money lenders." A scenario where a hard money loan may be used could be:

1.) A person is selling their home, and they decided to purchase a home before their present home is sold; BUT, their FICO (under 500) can't qualify them for a conventional or non-conventional loan so they would go after a hard money loan to secure the new home until their home is sold.

2.) A person is nearing foreclosure; they would secure a hard money loan to pay back the lender, getting enough time to sell the property and look for another place to live without defaulting.

*These loans typically carry a 12-18% interest rate, max loan to value must between 50 and 70%.
4 to 8 points are typically charged on these loans!!

For more information and lenders, feel free to contact me.

Super Realtor- here's some info for ya...

For the purpose of financing your investment properties there are two options- Hard Money & Soft Money.


SOFT MONEY- is simply money that is borrowed from banks and other lending institutions. This is the normal loan process where the loan is underwritten by an underwriter. There are rules and guidelines that are made by the lenders or by the groups that buy the loans from the lenders. This would include all loan types and verities.


HARD MONEY- is money from investors to fund your investment property. Hard Money is normally sort term. Hard Money is normally used when the property needs some repairs and rehab. With Hard Money you can finance the expense for repairs as a part of your loan. If you are able to locate a home with good equity you will be able to do the entire purchase and rehab with no money out of your pocket.


THE RULES- since the money is coming from private investors they can make their own rules, unlike soft money above where the rules can be more restrictive. For this reason you can obtain money and eventually additional money based upon your track record and performance with a particular Hard Money Lender.


AFTER REPAIR VALUE (ARV)- This is what the property would be worth after your rehab is competed and this value is normally determined by appraisers that work with your hard money lender. Normally Hard Money lenders will loan 65%-70% of the ARV. This is how it works… if you buy a home for $100,000 you can borrow $65,000, 65%, right? Wrong. Let’s say the ARV is $200,000 you would be able to borrow 65% of that amount or $130,000, now you have money to buy the house for $100,000 and pay for your rehab.


ESCROWS- This is money that is held by a 3rd party, normally a Title Company, for a specific purpose. In the case of Hard Money Lending they would escrow your repair money and in some instances they would escrow your first couple of payments. This is done to ensure that the work on the property is actually completed. When you first apply for your Hard Money Loan for a specific property you would prepare a work sheet of what needs to be done and the cost of that work. This would be used to set up your escrow account.


DRAWS- The way the money for repairs is disbursed is by using draws. The Hard Money Lender would physically inspect the property to ensure the work was actually done and disburse the money accordingly. The money is not released all at once, rather in gradual portions as the work is completed. Each portion is a draw.


WHEN & WHY- There is a time a place to use Hard Money Loans. Normally for Soft Money to be used the property needs to have a roof, windows, doors, floor coverings. If the property does need some work this is called deferred maintenance. This would be noted by the appraiser when the appraisal is done. Traditionally if this number is over $2,000 you would not be able to receive a Soft Money Loan. The other reason investors use Hard Money Loans is so they do not need to use any of their money or to personally fund their project. As you can see a good portion of the properties and investor buys would be financed with a Hard Money Loan. This is due to the fact that most foreclosed properties are not well kept. However, there are always exceptions to this.