In Season 3, Episode 47 of the Investor Shed Podcast, hosts Nick Beveridge and Jeremy Kitchen delve into the world of hard money loans. This episode is essential listening for real estate investors seeking alternative funding options for their projects. Nick and Jeremy discuss the concept of hard money loans, their ideal use cases, and what they are not intended for, providing valuable insights for investors at all levels.
Key discussion points include:
- Understanding Hard Money Loans: What they are, how they work, and their ideal use cases such as fix and flips, BRRRR strategy, and new construction.
- History of the Dollar and Inflation: Exploring the history of the US dollar, the impact of the gold standard, and the transition to fiat currency.
- The Five C's of Hard Money Loans: Qualifying criteria including capital, character, conditions, capacity, and collateral.
- Building Relationships with Lenders: The importance of preparation and relationship-building to secure better loan terms.
- Preparation for Borrowers: Essential steps for approaching hard money lenders, including understanding property value, rehab budget, and loan amount needed.
This episode offers a comprehensive guide for real estate investors on how to effectively use hard money loans to fund their projects, emphasizing the importance of preparation and relationship-building with lenders.
Chapters:
00:00 The Relationship Between Money and Water
11:42 The Impact of the Gold Standard on the US Dollar
16:52 Understanding Hard Money Loans and Their Ideal Use Cases
30:14 The Five C's of Hard Money Loans: Qualifying for Funding
50:50 Building Relationships with Hard Money Lenders: The Key to Success
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Official YouTube Podcast Page: https://www.youtube.com/@TheInvestorShed
Nick Beveridge's YouTube Page: https://www.youtube.com/@NickBeveridge
Real Estate Website: northidahorei.com
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Keywords:
hard money loans, understanding money, history of the dollar, inflation, gold standard, secured loans, unsecured loans, BRRRR strategy, new construction, loan duration, lending fees, real estate investing, loan terms, lender qualifications, collateral, loan-to-value ratio, relationship building, preparation
Sound Bites
- "A hard money loan is a loan from a private or non-traditional lender, and the asset being purchased is used as collateral for the loan."
- "Hard money loans offer potential returns of up to 30% and are ideal for short-term investments."
- "Lenders consider the five C's (capital, character, conditions, capacity, and collateral) when qualifying borrowers for hard money loans."
- "Building a relationship with hard money lenders and demonstrating a track record of successful deals can lead to better loan terms."
