Hard Money Lenders The Ultimate Guide For Home Flippers and Real Estate Investors.
Hard Money Lenders The Ultimate Guide For Home Flippers and Real Estate Investors. When you can’t or don’t want to go through a traditional lender, a hard money loan can be an option. Intended for home flippers and real estate investors, these short-term loans are generally underwritten based on the home being used as collateral, instead of your credit. However, these loans tend to be expensive and risky, especially if you’re new to flipping. Here’s what you should know about hard money before signing on the dotted line. What Is a Hard Money Loan? A hard money loan, often referred to as rehabilitation loan, is a type of loan backed by a “hard” asset, where the collateral is evaluated instead of the borrower’s financial profile. Those engaged in home flippers will often use this type of loan to secure short-term financing for home renovations. If you’re looking forward to flip a property, you don’t want to hold onto that property for three months. You want to get your money in and...