GET RID OF HARD MONEY LOANS AND USE EASY MONEY LOANS JIM INGERSOLL
ost investors fixing and flipping houses are relying heavily on hard money lenders. They are certainly
a viable option for the short-term financing needed to fix and flip, but other options are available?
1.
Hard Money Loans:
Hard money loans are available in most areas of the
United States and they allow
the borrower to use the equity
in the asset as collateral for the
loan. The main advantage of
using hard money is that it is
easy for a borrower to qualify
since the equity in the property
is the most important element
of the loan. Therefore, if you
can find a great deal, using
hard money will get you into
the game.
Hard money is considered to be “hard” because the points and interest are typically high and it can be painful
to absorb the high cost of this type of financing. Some hard money lenders will provide 100% financing, but
more are trending toward requiring the borrower to put skin into the game in the form of a downpayment, or by
not funding all of the repairs for the property.