It is about access.
From the time you were in high school you understood that having access to the resources that you needed at the time that you needed it was the secret to success.
Even before you had a definite plan for where you would be going to college you watched as your father missed opportunity after opportunity because he did not have the resources that he needed when he needed them. You watched as the fathers of your friends capitalized on one financial opportunity after another while your father missed out. Without access to the quick cash and hard money loans that others accessed, your friends and their families were able to purchase houses to renovate and resale. They were able to get access to the cash needed for a number of quick investments that paid off big dividends.
After watching your Dad struggle to barely meet ends meet when the fathers of your friends were making it big, you promised your self that you would never let this happen to you. In fact, when you were taking business classes in college, and later when you were studying for real estate exams, you paid special attention to the terms and conditions of all kinds of loans and a variety of kinds of financing options.
How Does a Hard Money Loan Work?
Most hard money loans are secured through a private hard money lender by a property with equity of 30% to 50%. This equity, obviously means that the investor is well protected.
Hard money loans also offer higher interest rates and lower loan to value ratios. In fact, these interest rates can start at 15%, 18% or even higher.
Both small and large real estate developers rely on nearly instant access to these kinds of loans so that they can jump at the opportunity to buy the properties that they want to renovate and sell again as soon as possible. By difinition, for instance, hard money deals are often most wanted for their quick turnaround, often within seven to 14 days to process.
Money is time and time is money when it comes to the decisions and opportunities that often provide the best financial gain.
Do you have access to the funds that you need to make you next big move?