| My personal favorite place to get cash for real estate | | | | would loan you as much as $39,000, which would |
| deals is a through a hard money lender. For those of | | | | leave you with almost twenty thousand dollars to hire |
| you who don't know what a hard money lender is, let | | | | someone you've found to help bring the house into a |
| me explain. Pay close attention to details, because | | | | livable condition. |
| there are only a few sources for hard money loans | | | | 7. Hard moneylenders usually do not require a down |
| available today. | | | | payment. You heard me right-no money down. A |
| A hard money real estate lender is a certain type of | | | | conventional lender almost always requires at least |
| lender that loans on the future equity of the house | | | | 20% down with good credit for an investor property. |
| after repaired value. Unlike conventional lenders, these | | | | However, depending on how bad your credit is, you |
| lenders don't care about what the house is worth at | | | | may have to pay a small fee, but some hard |
| the present time. They don't even want to know; all | | | | moneylenders can even finance that fee directly into |
| they care about is what the house is going to be | | | | your loan; you just need to ask them about that. |
| worth after it is fixed up and ready to sell. | | | | 8. And last but definitely not least-they will give you |
| Take a look at some important facts on how hard | | | | money even if you have bad credit, no pay stubs or |
| moneylenders work: | | | | no tax returns. This really opens doors for most |
| 1. They loan on future equity, not what the house is | | | | entrepreneurs. Let's face it-all of us who've ventured |
| worth. | | | | out on our own to start our own businesses probably |
| 2. They can close in as little as two weeks. | | | | have some bad credit from past bad opportunities, and |
| 3. You will not go through nearly as much red tape | | | | some pretty pitiful tax returns that a conventional |
| than if you went through a conventional lender. | | | | lender would laugh at. So these hard money loans are |
| 4. They give you the money to fix it up in a draw-type | | | | a second chance for us to make some serious |
| system. (If you don't know what that is, just follow the | | | | money in real estate. By the way, I can get a |
| example below; it will explain everything to you.) | | | | conventional mortgage now anyway, but I personally |
| 5. Hard money loans are short-term loans; generally | | | | still use hard money loans because what they offer |
| 3-6 months. | | | | surpasses any conventional loan program I've ever |
| 6. They generally loan as much as 65% of after | | | | heard of. |
| repaired value. For example, if you found a house for | | | | Find the deals, get approved and make some huge |
| sale for $20,000 in as-is condition and it would be | | | | paychecks. |
| worth $60,000 after repairs, the hard money lender | | | | |