Breaking Down Hard Money Financing

Hard money has been the go-to financing for rehabbers, or those in the flipping houses business. It is a popular source of funding to veteran house flippers as it east easy and fast access to cash. Many beginners, however, are afraid to try this method of financing just because they have misconceptions about it.

The Myth On Getting Hard Money

Contrary to what its name bears, hard money is not that hard to acquire. It actually is the opposite. Hard money lenders are found across the country are always in the search for rehabbers to help. Unlike traditional lenders such as banks, those who offer hard money loans usually operate on their own. That means that if you convince the hard money lender, you will get the cash you need.

Banks, on the other hand, usually use teams to process loan applications. These teams thoroughly assess a candidate for credit. Loans will also need the approval of more personnel. This is one reason why it is so much faster to for hard money loans to be processed. While loan applications in banks usually take at least 30 days to process, some hard money lenders can give you the cash in just two days.

RehabHardMoney.com, for instance, approves (or rejects) applications in at least two days. The web site uses a pre-qualification system wherein buyers who sign up online can pre-qualify for hard money financing wherever they are in the country.

This system works perfectly for rehabbers. If your application is unfortunately turned down, then you will be able to look for a new hard money lender or other forms of funding to finance the fixer upper project you wan t to pursue. As they say, if you will fail, fail fast and be back on your feet faster.

Avoid The Hard Rejection

Rejection sparks self evaluation. But in the case of getting hard money loans, it sparks an evaluation of the property you want to flip. Hard money lenders mostly do not scrutinize the credit score of a borrower. What they assess is the property a borrower will flip with the money he is asking for. They will determine whether the house will yield a positive return and if you will be able to pay the loan with the profit.

If your application is rejected, then you might want to reconsider and re-evaluate the fixer upper you plan to rehab. By the way, banks always assess the creditworthiness of a borrower. This means that you must secure a high credit score, a good credit report, or show proof that indeed have the ability to repay the loan. This process, again, is more tedious and time-consuming compared to hard money loans.

Where To Get It

You can ask your colleagues in the business for referrals if you want to look for hard money lenders. Another option is for you to search online for the closest lender in your area. You can check RehabHardMoney.com and fill out a borrower’s form. Signing up will prequalify you for hard money loans. Rehab Hard Money will also take care of the searching for you. All you need to do is go to RehabHardMoney.com and click the Hard Money Loans link. Don’t let you cash buyer problems stop you from flipping houses and making a fortune from the business.