HARD MONEY

Are you considering applying for a loan to invest in real estate? But financial institutions are making it difficult for you, well let me tell you that there is another alternative, EL Hard Money or hard money is a way to borrow without using traditional mortgage lenders. Loans come from individuals or investors who lend money based (for the most part) on the property that will be used as collateral.

However, not everything is rosy, since one of the biggest disadvantages of requesting HARD MONEY is that it usually has very high interests, but wait, let me explain when it is a good idea to request it.

Hard Money Loans make the most sense for short-term loans. Flip and rollover investors are a good example of Hard Money users: they own a property long enough to increase in value, they don’t live there forever. They will sell the property and pay off the loan, often within a year or so. It is possible to use a Hard Money Loan to get into a property and stay there, but you will want to refinance as soon as you can get a better loan.

Why use Hard Money?

✅If Hard Money has such high interest, why would you use it?

✅ Hard Money has its place for certain borrowers who can’t get traditional financing when they need it.

1) Speed.

Because the lender is primarily focused on collateral (and less concerned with your financial position)

2) Flexibility.

Hard Money agreements can also be more flexible than traditional loan agreements. Lenders do not use a standardized underwriting process.

3) Approval

The most important factor for Hard Money lenders is collateral. If you are buying an investment property, the lender will loan you all that the property is worth.

I hope this information is useful to you and remember that if you want to know more about real estate investments or want to know about the incredible projects I have for you, do not hesitate to contact me and follow me on all my social networks.