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Article:
Hard Money Lenders -- 'No Money Down' The Easy Way by: David Whisnant Would it help you as a real estate investor to be able to 'Close For Cash in Days,' even if you're tapped out financially? Hard money lenders are perhaps the best way to get 100% financing with easy qualifying, money for fix- up, and fast closings. So what can hard money lenders do for you? Hard money lenders make relatively short term (12-24 month) loans to real estate investors for the purposes of acquiring the property and rehabbing the property. These loans are often funded by pools of private investors that have been grouped together into a pool of capital by a lender. The hard money lender is looking for maximum return, and is willing to take more risk for this return in the form of easier lending standards. If you strike the right purchase deal, you can even borrow 100% of the purchase price plus some or all of your repair money by using hard money lenders. Here's how it works. Hard money lenders typically loan 65% of the ARV or After Repair Value of the property when it is repaired or ready for resale. That 65% loaned by the hard money lender is calculated based on the value of the property AFTER REPAIRS, not as it currently sits, and not based on the price is being paid for the property. For example, Say that the owner is willing to sell me his house for $'60
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