Hard money literally thrives on good property deals presented by borrowers
. Simply put, you need to find a good deal if you want access to hard money.
Let us recall that hard money loans are collateral-based. What the hard money lender will consider as collateral is the property you are about to buy, for instance a fixer upper. A lender will not approve your loan and accept the property as collateral if the house has no potential to yield profit. Hard money lenders assess the profitability of the fixer upper you are about to rehab and not your creditworthiness. That means that you, as a rehabber, must search only for the best fixer upper deals.
The amount of money that will be given to you will also depend on the ARV, or the after repair value of the property. This is the value of the property after it has been rehabbed. The bigger the ARV, the bigger the loan you will get. Hard money lenders usually grant borrowers 70% of the ARV and this amount is often enough to buy the property and answer repair costs.
In a way, securing hard money is a way of validating whether the fixer upper you found indeed will give you more returns. Lenders are willing to finance a deal for you if it will yield positive returns because that is how they will earn too.
Learn more tips on using hard money to your benefit today. Read 7 Secrets to using Hard Money to Your Advantage and 5 Mistakes almost every Investor makes when Borrowing Hard Money from RehabHardMoney.com. Simply go to RehabHardMoney.com and fill out a submission form to receive the FREE reports. Submitting the form also pre-qualifies you for hard money loans anywhere in the country. Rehab Hard Money has a network of lenders who can cater to your specific needs in your area.
Rehab fixer upper houses today by applying for hard money loans through Rehab Hard Money.com.