The other type of investors who make money in property investment buying are rehabbers
. Using your own money when rehabbing buying a rundown property and then repairing it is risky. But because of the presence of hard money lenders, the risk is transferred from the investor to the lender. These lenders are highly experienced real estate investors who fund deals that they think are profitable. In short, if you are financed by a hard money lender, that means the deal is one that will make you so much profit. What happens when the deal fails? The house goes to the lender as collateral and the investor moves on to find his next deal. The idea is simple. When you borrow from hard money lenders, they will make sure it's a success.