Dec 26, 2019
Wendy Sweet and Bill Fairman www.CarolinaHardMoney.com
Hard money is a short term high interest loan that enables the buyer to fix up their home and then re-sell it.
You get all the money to buy and fix up a property as long as it is less than 75% of the end sale's price.
The bank will only lend you a percentage of the price you pay. No money for repairs.
The bank has different criteria for whether your new home is worth lending to. If the house is in bad shape, most banks will make it harder to decide.
Banks take 30-60 days to loan you the money. Hard money decisions are made in 2 weeks.
Today, you are competing with cash buyers who can buy fast and if you are waiting for the bank manager to decide, you may lose the deal.
There is no down payment with Hard Money. You do not use your own money, usually. Each deal is looked at global.
Bill and Wendy make a risk assessment. How hard would it be to sell if your deal goes off the rails and Wendy has to sell it.
Look for Private Money in your local market. Private Money is not as expensive as Hard money. Most Private Money lenders do not have massively deep pockets and run out. A relationship with a Hard Money lender helps to cover those deals your Private Money lender can't help you with.
Same with banks. Investments all have their own personalities. Each project may match with a Private Money lender, a Hard Money lender or a bank.
"Get involved in your local REI group" ~ Wendy Sweet