You can watch this episode on YouTube.com: https://youtu.be/_6ekRBudk2M.
Do you know how hard money works? You should!
0:00 – Introduction.
0:53 – What is Hard Money? Lending against a hard asset. Different than traditional lending, which is lending against the credit of a borrower. Hard money is usually a short-term loan.
3:10 – What’s Private Money? Private money is funding from a friend or family member that’s generally not a real estate person.
4:37 – Why Hard Money? Traditional lenders won’t lend o...
You can watch this episode on YouTube.com: https://youtu.be/_6ekRBudk2M.
Do you know how hard money works? You should!
0:00 – Introduction.
0:53 – What is Hard Money? Lending against a hard asset. Different than traditional lending, which is lending against the credit of a borrower. Hard money is usually a short-term loan.
3:10 – What’s Private Money? Private money is funding from a friend or family member that’s generally not a real estate person.
4:37 – Why Hard Money? Traditional lenders won’t lend on property that is trashed. Hard money is also fast — can fund in a matter of days or even hours!
7:10 – The Process. If both sides are very organized, it’s gonna be fast. I want it to be easy. I’m not interested in fluff. Need to know what the value is, condition of the property, and what the ARV is. I need contract, and the entity documents. I like to do 80% loan to value.
11:35 – Fees. I’m a 2 and 12 guy. 2 points is 2% of purchase price. 12% APR. Points + days of interest + amount you borrowed = total loan payoff. I prefer two accounting periods: when I fund it, and when we close. All fees are paid at closing. Dirty estimate is take the borrowing rate and multiply it by 8%. It’s more expensive than a regular loan, but they’re not the same instrument. Hard money is designed for speed, flexibility, and short term. Hard money enables you to take advantage of deals now…yes it costs, but would you rather have a piece of something or none of something?
17:19 – BRRRR Strategy. Buy, Rehab, Rent, Refinance, Repeat.
18:40 – Horror Stories. Understand first vs second position. Understand the value.
26:25 – Vetting Borrowers. You can learn a lot by how quickly borrowers get information back. Check out their car — is it clean an organized? So’s their business strategy.
30:35 – The Ecosystem Needs Everyone. We need long-term lenders, we need short-term lenders. We need agents, title, etc. We need everybody.
31:45 – What’d we learn today?
35:03 – Bloopers.
* No points were harmed in the making of this video.
Please contact us to tell us you love us, you want to hire us! Call or text:
Matt Strong is the 2/12 Hard Money Guy
bit.ly/StrongHardMoney
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Need Hard Money? (801) 244-3888
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.
