Hard Money Characteristics
Hard money loans are expensive, designed to be short-term loans, and have loan amounts that are typically higher than conventional loans.
Loan Amount Calculation
Purchase price = $50,000
Rehab budget = $20,000
Total capital = $70,000
ARV = $100,000
70% of ARV = $70,000
Sources of Hard Money
Specialized Hard Money Lenders
Individuals or group of individuals
Mortgage pool or investment fund
Self-directed IRA
Understanding the role of the “Loan Broker”
Right Situations for Using Hard Money
“Distressed” properties
When speed counts
When used as a “bridge”
For taking a “cash-out”
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